>From the cygwin website http://cygwin.com/licensing.html

In accordance with section 10 of the GPL, Red Hat permits programs whose
sources are distributed under a license that complies with the Open
Source Definition [See http://www.opensource.org/docs/osd/ for the
precise Open Source Definition and a list of the licenses certified by
OSI as conforming to that definition] to be linked with
libcygwin.a/cygwin1.dll without libcygwin.a/cygwin1.dll itself causing
the resulting program to be covered by the GNU GPL.

This means that you can port an Open Source application to Cygwin™, and
distribute that executable as if it didn't include a copy of
libcygwin.a/cygwin1.dll linked into it. Note that this does not apply to
the Cygwin™ DLL itself. If you distribute the Cygwin™ DLL, either in its
original form or in a form modified by you, you must adhere to the terms
of the GPL, i.e. you must provide sources for the Cygwin™ DLL unless you
have obtained a special Cygwin™ license to distribute the Cygwin™ DLL in
only its binary form (see below).

Red Hat sells a special Cygwin™ License for customers who are unable to
provide their application in open source code form. For more
information, please see: http://www.redhat.com/software/cygwin/, or call
+1-866-2REDHAT ext. 45300 (toll-free in the US)
Outside the US call your regional Red Hat office.

Perhaps the license has changed over time? it certainly appears to be ok
now to link bsd (or any of these:
http://opensource.org/licenses/alphabetical) code with cygwin1.dll

Antony

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