Linux Open Source Distributed as Embedded Component in Hardware Found to be Violation of GPL

A German court found that VOIP phones running Linux software that were distributed without the source code and license text violated the terms of the General Public License (GPL) (Link to News). Skype was found guilty of violating the terms of the GPL for selling and distributing VOIP phones, which are manufactured by SMC Networks, without the source code or the text of the license. The court also found that SMC Networks' move to remedy the violation by distributing notice to buyers with reference to the license text and the location of the source code was inadequate. Interesting in this case is the fact that the reseller of hardware products (namely Skype) with embedded source code was found guilty of violating terms of a license. The court reasoned that, although Skype was not the manufacturer of the phone, the company was obligated to comply with the license and applicable law once it became aware of the violation. The case is subject to appeal and the suit against SMC Networks has not been heard. There will very likely be more news on this.