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After my client consulted a Legal team specializing in GPL, GPL2, GPL3 etc he found the claims and accusations of Michael beck to be flawed, as these modules are easily reproduced in other CMS like Joomla and Drupal and do not need or necessary have to have XOOPS to operate, they do not have to conform to any form of request or compilation methods or even have to be GPL in anyway.
I am glad that your client consulted with the lawyers.
However, XOOPS is the wrong entity to argue about it. You and your client would have to argue with
Free Software Foundation (FSF) and the
Software Freedom Law Center, as they are the one who own GPL and are interpreting how GPL should be used/implemented.
As I told you, we support developers creating XOOPS commercial modules that they can sell. However, our understanding is that all XOOPS modules have to be released under GPL, as it is stated here on GNU Website:
http://www.gnu.org/licenses/gpl-faq.html#GPLModuleLicenseAnd as GPL-based modules, the source code has to be made available to the customer who paid for them.
This is very well documented on Drupal:
http://drupal.org/licensing/faq#q7 especially questions 7, 8, 9
which is very clear about what you can and cannot do with modules based on Drupal, and since we're using the same license (GPL), the same applies to XOOPS as well.
Bottom line - if you distribute a XOOPS module, regardless if it's paid or not, you have to provide (or offer to download) its source code, so the user (or client, if it's paid) is able to modify the code if he desires that!
Since your "End User License" stated that
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You agree not to modify, adapt, translate, reverse engineer, decompile, disassemble or otherwise attempt to discover the source code of the Software.
it would add restrictions to GPL, and therefore it seems that it would violate GPL.
I am not a lawyer, and I don't want to get here into a long discussions about licenses here. I suggest to contact directly
Free Software Foundation (FSF) and the
Software Freedom Law Center, to get their opinion if your End User License is in violation of GPL. Once you have it, please let us know.
Couple of useful links related to similar Open Source projects using GPL and addressing what can and cannot be done with GPL:
JoomlaWordPressInteresting case study involving
Joomla & Simple MachinesOnce again - we do support commercial (paid) modules for XOOPS, and are glad to place them in our repository, but they need to be compliant with GPL.