Or maybe FOSS community raised money to buy the license from him?
Or the FOSS community raised money to create a FOSS clone of the program?
Those would be interesting stories/programs to look at.
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Yes. The 3D modelling software Blender was closed source. A FOSS community got together and raised the money to buy and open source it. And then it became better than ever.
Now it is the market leader. Similar to the Linux kernel which is used in most computers, blender is nowadays used by most people. Companies rather pay people to work on blender than to buy expensive licenses of other tools.