In this section, we perform a textual diff on the S and the W licenses to discuss these differences and their ramifications.

The Preamble

The Preamble confirms that there are indeed three versions. v
CERN-OHL-S-2.0 CERN-OHL-W-2.0
CERN Open Hardware Licence Version 2 - Strongly Reciprocal            

Preamble

CERN has developed this licence to promote collaboration among
hardware designers and to provide a legal tool which supports the
freedom to use, study, modify, share and distribute hardware designs
and products based on those designs. Version 2 of the CERN Open
Hardware Licence comes in three variants: CERN-OHL-P (permissive); and
two reciprocal licences: CERN-OHL-W (weakly reciprocal) and this      
licence, CERN-OHL-S (strongly reciprocal).                            
CERN Open Hardware Licence Version 2 - Weakly Reciprocal              

Preamble

CERN has developed this licence to promote collaboration among
hardware designers and to provide a legal tool which supports the
freedom to use, study, modify, share and distribute hardware designs
and products based on those designs. Version 2 of the CERN Open
Hardware Licence comes in three variants: CERN-OHL-P (permissive); and
two reciprocal licences: this licence, CERN- OHL-W (weakly reciprocal)
and CERN-OHL-S (strongly reciprocal).                                 

Compatible licenses

You can see that the S license is compatible with itself. The W license is compatible with both W and S.

CERN-OHL-S-2.0 CERN-OHL-W-2.0
1 Definitions

  1.1 'Licence' means this CERN-OHL-S.                                

  1.2 'Compatible Licence' means

       a) any earlier version of the CERN Open Hardware licence, or

       b) any version of the CERN-OHL-S, or                           

       c) any licence which permits You to treat the Source to which
          it applies as licensed under CERN-OHL-S provided that on    
          Conveyance of any such Source, or any associated Product You
          treat the Source in question as being licensed under        
          CERN-OHL-S.                                                 
1 Definitions

  1.1 'Licence' means this CERN-OHL-W.                                

  1.2 'Compatible Licence' means

       a) any earlier version of the CERN Open Hardware licence, or

       b) any version of the CERN-OHL-S or the CERN-OHL-W, or         

       c) any licence which permits You to treat the Source to which
          it applies as licensed under CERN-OHL-S or CERN-OHL-W       
          provided that on Conveyance of any such Source, or any      
          associated Product You treat the Source in question as being
          licensed under CERN-OHL-S or CERN-OHL-W as appropriate.     

Available Components

Now we start with the very interesting concept of an Available Component. The definition in both licenses are almost the same but not completely. The difference is subtle, but clause 1.7 b) i) has to be a physical part for S, whereas for W it can also be a library or code.

Firstly, an available component can be a part, sub-assemlby, library or code. For the S license, if it is a library or code, then it has to be licensed to you under a compatible license (clause a)) or it has to be part of the normal distribution of a tool used to design or make the product (clause b) ii)).

If it is not a library or code, so it is a part or sub-assembly, then you can declare it to be an available component if it is a physical part together with all the rights, information and source code to make it or source it.

So, as an example, if you license your hardware with S, it can make use of some proprietary controller that requires proprietary firmware to run it on the condition that this controller and the firmware is available to you and other licensees. This would then be an available component.

For the W license, it is not necessary that this is a physical part; it can be a library or code as well. Suppose your design requires a proprietary software package, that is generally available to anyone, you can license your design under the W license, but not under the S license.

CERN-OHL-S-2.0 CERN-OHL-W-2.0
  1.7 'Available Component' means any part, sub-assembly, library or
      code which:

       a) is licensed to You as Complete Source under a Compatible
          Licence; or

       b) is available, at the time a Product or the Source containing
          it is first Conveyed, to You and any other prospective
          licensees

            i) as a physical part with sufficient rights and          
               information (including any configuration and           
               programming files and information about its            
               characteristics and interfaces) to enable it either to 
               be Made itself, or to be sourced and used to Make the  
               Product; or                                            
           ii) as part of the normal distribution of a tool used to
               design or Make the Product.

  1.7 'Available Component' means any part, sub-assembly, library or
      code which:

       a) is licensed to You as Complete Source under a Compatible
          Licence; or

      b) is available, at the time a Product or the Source containing
         it is first Conveyed, to You and any other prospective
         licensees

           i) with sufficient rights and information (including any   
              configuration and programming files and information     
              about its characteristics and interfaces) to enable it  
              either to be Made itself, or to be sourced and used to  
              Make the Product; or                                    
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          ii) as part of the normal distribution of a tool used to
              design or Make the Product.

External Material

The W license has an extra definition called External Material. This is interesting because it isn’t completely clear how this is different from available components since there is no limitation on an available component to be physical as in the S license. Most likely the difference is in the fact that for external material, it requires a well-defined interface. We expect to see the difference below.

CERN-OHL-S-2.0 CERN-OHL-W-2.0
  1.8 'Complete Source' means the set of all Source necessary to Make 
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      a Product, in the preferred form for making modifications,
      including necessary installation and interfacing information
      both for the Product, and for any included Available Components.
  1.8 'External Material' means anything (including Source) which:    
                                                                      
      a) is only combined with Covered Source in such a way that it   
         interfaces with the Covered Source using a documented        
         interface which is described in the Covered Source; and      
                                                                      
      b) is not a derivative of or contains Covered Source, or, if it 
         is, it is solely to the extent necessary to facilitate such  
         interfacing.                                                 
                                                                      
  1.9 'Complete Source' means the set of all Source necessary to Make 
      a Product, in the preferred form for making modifications,
      including necessary installation and interfacing information
      both for the Product, and for any included Available Components.

Copying

Reciprocity

In the clauses below an interesting distinction in the level of reciprocity: For the S license there is an extra clause that defines that including the covered source in a larger work means a modification of the covered source and that this larger work is then the modified covered source. Clause 3.3 (shown in the next subsection) states that the modified covered source should retain all notices and the license of the covered source (so the S or the W).

In other words, work licensed under W can be used in larger works without having an effect on the license of the larger work, so it can be proprietary as well. For S this larger work has to have the S license. So, both licenses are reciprocal but indeed, S is much stronger.

CERN-OHL-S-2.0 CERN-OHL-W-2.0
3 Copying, modifying and Conveying Covered Source

  3.1 You may copy and Convey verbatim copies of Covered Source, in
      any medium, provided You retain all Notices.

  3.2 You may modify Covered Source, other than Notices, provided that
      You irrevocably undertake to make that modified Covered Source
      available from a Source Location should You Convey a Product in
      circumstances where the recipient does not otherwise receive a
      copy of the modified Covered Source. In each case subsection 3.3
      shall apply.

      You may only delete Notices if they are no longer applicable to
      the corresponding Covered Source as modified by You and You may
      add additional Notices applicable to Your modifications.
      Including Covered Source in a larger work is modifying the      
      Covered Source, and the larger work becomes modified Covered    
      Source.                                                         
3 Copying, modifying and Conveying Covered Source

  3.1 You may copy and Convey verbatim copies of Covered Source, in
      any medium, provided You retain all Notices.

  3.2 You may modify Covered Source, other than Notices, provided that
      You irrevocably undertake to make that modified Covered Source
      available from a Source Location should You Convey a Product in
      circumstances where the recipient does not otherwise receive a
      copy of the modified Covered Source. In each case subsection 3.3
      shall apply.

      You may only delete Notices if they are no longer applicable to
      the corresponding Covered Source as modified by You and You may
      add additional Notices applicable to Your modifications.
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Conveyance

We clearly see in this section that Available Components have their own license in both S and W. In the W license the same is true for External Material but again, here it reiterated that the work is interfaced to the external material

CERN-OHL-S-2.0 CERN-OHL-W-2.0
  3.3 You may Convey modified Covered Source (with the effect that You
      shall also become a Licensor) provided that You:

       a) retain Notices as required in subsection 3.2;

       b) add a Notice to the modified Covered Source stating that You
          have modified it, with the date and brief description of how
          You have modified it;

       c) add a Source Location Notice for the modified Covered Source
          if You Convey in circumstances where the recipient does not
          otherwise receive a copy of the modified Covered Source; and

       d) license the modified Covered Source under the terms and
          conditions of this Licence (or, as set out in subsection
          8.3, a later version, if permitted by the licence of the
          original Covered Source). Such modified Covered Source must
          be licensed as a whole, but excluding Available Components
          contained in it, which remain licensed under their own      
          applicable licences.                                        
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  3.3 You may Convey modified Covered Source (with the effect that You
      shall also become a Licensor) provided that You:

       a) retain Notices as required in subsection 3.2;

       b) add a Notice to the modified Covered Source stating that You
          have modified it, with the date and brief description of how
          You have modified it;

       c) add a Source Location Notice for the modified Covered Source
          if You Convey in circumstances where the recipient does not
          otherwise receive a copy of the modified Covered Source; and

       d) license the modified Covered Source under the terms and
          conditions of this Licence (or, as set out in subsection
          8.3, a later version, if permitted by the licence of the
          original Covered Source). Such modified Covered Source must
          be licensed as a whole, but excluding Available Components
          contained in it or External Material to which it is         
          interfaced, which remain licensed under their own applicable
          licences.                                                   

Making and Conveying Products

Clause 4 in S is the same as clause 4.1 in W. When a Product is made or conveyed, the recipients should have a copy of the Complete Source which is the Covered Source. The Available Components keep there own licenses. The W license adds clause 4.2 that states that the source of External Material does not need to included. This seems to imply that the source of Available Components needs to be included, but clause 1.8 states that the source of Available Components does not need to be included provided that there is enough information to make or source it. Apparently there is a subtle difference that hopefully arises in the use-cases.

The W license also adds clause 4.3 that states that the Product itself may have a different license.

CERN-OHL-S-2.0 CERN-OHL-W-2.0
4 Making and Conveying Products

You may Make Products, and/or Convey them, provided that You either   
provide each recipient with a copy of the Complete Source or ensure   
that each recipient is notified of the Source Location of the Complete
Source. That Complete Source is Covered Source, and You must          
accordingly satisfy Your obligations set out in subsection 3.3. If    
specified in a Notice, the Product must visibly and securely display  
the Source Location on it or its packaging or documentation in the    
manner specified in that Notice.                                      
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4 Making and Conveying Products

  4.1 You may Make Products, and/or Convey them, provided that You    
      either provide each recipient with a copy of the Complete Source
      or ensure that each recipient is notified of the Source Location
      of the Complete Source. That Complete Source includes Covered   
      Source and You must accordingly satisfy Your obligations set out
      in subsection 3.3. If specified in a Notice, the Product must   
      visibly and securely display the Source Location on it or its   
      packaging or documentation in the manner specified in that      
      Notice.                                                         
                                                                      
  4.2 Where You Convey a Product which incorporates External Material,
      the Complete Source for that Product which You are required to  
      provide under subsection 4.1 need not include any Source for the
      External Material.                                              
                                                                      
  4.3 You may license Products under terms of Your choice, provided   
      that such terms do not restrict or attempt to restrict any      
      recipients' rights under this Licence to the Covered Source.