[Sussex] Licences

[Steve Dobson]

Geoff

Here is a little question to your nearest and dearest:

Company A license some software from company B.  The license
allows company A to develop and distribute derived works.
Company develops such a derived work and license it to
company C.  If company B finds that A is in breach of its
license and revokes said license does C also lose its
license as well?

I know the (L)GPL has provisions of this, but here I am looked
for a general understanding of the law.  If, for example,
Microsoft or Sun were to be found to have breached the
licence terms of software included in Windows or Solaris,
respectfully, would the end users of the software:

  1). have to get an additional license to continue to use
      the software, or

  2). be forced to shut down all computers running those
      operating systems until new versions were made
      available that did not include the infringed software?

My thinking here is that IBM's "Redacted Memorandum in
Support of IBM's Motion for Partial Summary Judgment on
its Counterclaim for Copyright Infringement" (the 8th
Counterclaim http://www.groklaw.net/pdf/IBM-231.pdf)
could be the biggest boost to FOSS since sliced bread as
the GPL indemnify the end users from just such a seniro.

Steve

P.S. Hope you both are well.