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Microsoft Singularity: What is the mess we've been handed?

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Microsoft
OSS

I'm totally tortured with agonizing over

Microsoft

's Singularity. See, I have a standing moral obligation with myself as follows: If Microsoft ever released a purely Open-Source or Free Software system - as defined by the Free Software Foundation, the Open Source Initiative, or common conventional wisdom - I have said (and will repeat here) that I would download it, try it out, review it, and possibly adopt it, to be treated no different from software from, for example, Red Hat Inc. or BSD.

But I'm poring over the license, and this seems like it doesn't qualify. It seems to be proprietary with the extra feature of being able to see the source, and modify and redistribute it only in the interests of academic research, with the stipulation that:

* It allows no "activity which purpose is to procure a commercial gain to you or others." Does blogging about it on a website with ads count? Does publishing an ebook hacking guide count?

* "That Microsoft is granted back, a non-exclusive, irrevocable, royalty-free, and sub-licensable license to, for any purpose, reproduce, publicly perform or display, install, use, modify, distribute, make and have made, sell and transfer modifications to and/or derivative works of the Software source code or data that you provide to Microsoft through the CodePlex tool or otherwise make directly available to Microsoft."

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