Proprietary Linux???

[Tom Luongo]

> >In Digital News & Review (V 12 N 14, July 24, 1995; pg. 10):

> >Linus Torvalds developed Linux as a project while a student at the
> >University of Helsinki. The unique features of Linux is that its
> >kernel does not use proprietary code. The original version has been
> >enhanced by many Unix programmers throught the world, who have used
> >the Internet to collaborate on improving it. The original version of
> >Linux is still distributed at no charge to students and others who are
> >interested in working with it.

This press release release about "Red Hat" makes it seem like there is
a proprietary Linux that can not be redistributed at no charge.  I
thought that the license conditions for using Linux code included
making any derivative works freely redistributable.

Could someone clarify for me?

Thanks.

Tom