Yes, the MIT License is one of Lua's very, very key features. Those who use Lua and ship it in the millions to paying customers are only able to do so, the way they're doing it, because of the freedoms of the MIT License.
Apropos Lua not being 'open', or a 'bad language', as a user of Lua on a full-spectrum approach, I can definitely say "meh!" to all nay-sayers. For every detraction, there is a significant advantage. LuaJIT, cache-coherency, access to high-performance components, well-compartmentalized, due to a simple discipline .. these are the things to love about Lua. But please, anyone not yet familiar with the subject, approach Lua not critically; from the perspective of the progressive, if you haven't grok'ed the way you can drop the VM into anything and pass it byte-code, then please do this first. Grok the VM, guys. Fact is: Lua can be glommed onto anything.
Any-thing.