Licensing determines what rights you have to use this software in both binary and source form. FreeIPA is made up of a number of different pieces of software, each with their own licensing. Some of these licenses are described below (this list is not to be considered exhaustive). And we must say, of course, that this document should not be taken as legal advice. Talk to your attorney.
389 Directory Server
The core is GPL + Exception. Details are at the Licensing page.
MIT, freely distributable.
mod_nss, mod_proxy, mod_auth_kerb
These are Apache modules and are licensed under the Apache 2.0 license.
NSPR / NSS / LDAPSDK
This code is licensed under the MPL/LGPL/GPL tri-license.
Cyrus SASL is covered by its own license which allows use as long as several rules are followed. See COPYING in the source distribution available from ftp://ftp.andrew.cmu.edu/pub/cyrus-mail/
From Sep 15, 2010 a CLA is no longer required - see Why CLA? article for more details.