The paper analyses existing open source licenses with the aim of choosing a license that is suitable for e-Governance projects. A method is presented for systematically choosing the most suitable license, which is applied to a selection of licenses, among which the Common Development and Distribution License is found to be the most suitable. An appropriate Open Source policy is extremely important for a sustainable e-Governance program. Categories and Subject Descriptors K.5.1 [Legal Aspects of Computing]: Hardware/Software Protection