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Is HTC Willfully Violating the GPL V2?

This article is misinformed. Android is not under a GPLv2 license. It is licensed under an open source Apache license, which allows HTC to do this.

Why Google chose the Apache Software License over GPLv2 for Android

Proprietary software changes are allowed under the Apache license, as well as source code protection

The article IS correct the kernel, Linux kernel source that is used, is under the GPL v2.

Two very good articles regarding this both of which are in reference to HTC and the release of the Hero kernel source.

Teknologist custom kernel for Hero and MCR

HTC Releases Hero Kernel Source for Developers (Updated) | PhoneNews.com

Anything that is part of the kernel made to run in Dalvik falls under the Apache license. Everything else in that kernel is GPL v2 including anything that runs in the kernel to prevent modification at the hardware level. So long as whatever it is is a modified portion of the 2.6.x Linux kernel it, by licensing and law, needs to be released as source to the public.
 
Ok, I just assumed that they were talking about Dalvik components since the article mentions HTCs measures to prevent any changes made from sticking after reboot. If they're talking about the pure kernel source then yes they are supposed to release it immediately as per the GPL, which licenses the Linux source of the kernel.

But are they willfully breaking GPL? Doubtful. I think the article is just another way for people to complain about what's really bothering them, which is HTCs methods to prevent software changes. HTC is a multimillion dollar corporation. They wouldn't willfully break open source standards just to screw with people...clearly the source for the kernel will get released, and HTC is not going to (nor can they) try to block that from happening.
 
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