@vathpela @glyph This (conveying code from company A to B to C while claiming it was not "distributed") seems to violate the plain language of "copying" or "distribution" as it would have been understood by people who place their code under GPL2, and I doubt a court would sign on with it if this were tested. In GPL3 "distribution" is replaced with a more fine-grained definition of terms concerning copying, and so if this loophole was ever real, it's probably shut now.
@vathpela @glyph At any rate if the behavior in question has been halted for unrelated reasons it seems hard to come to a firm conclusion about whether it was entirely legal?