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This is a topic that I've had come up a number of times. I find the best way to get some people to think of the difference is to use common examples. Android is what I normally point to as an example of open source with which almost everyone is familiar, and most have used. It also give you an easy example of how different device manufacturers make use of the open source Android OS. I would use Linux, but if they know what Linux even is, they usually understand the difference.