<snip>The "modification" clause is why many businesses do not use GPL
software. They can't modify the source, even for internal use, without
their own work being encumbered by the GPL.
</snip>

The GPL only kicks in when you are distributing. You can freely modify
GPL'd software for your own use, even in a business setting.

The following is from the FSF's FAQ:

http://www.fsf.org/licensing/licenses/gpl-faq.html#GPLRequireSourcePostedPublic

Does the GPL require that source code of modified versions be posted
to the public?

The GPL does not require you to release your modified version. You are
free to make modifications and use them privately, without ever
releasing them. This applies to organizations (including companies),
too; an organization can make a modified version and use it internally
without ever releasing it outside the organization.

But if you release the modified version to the public in some way, the
GPL requires you to make the modified source code available to the
program's users, under the GPL.

Thus, the GPL gives permission to release the modified program in
certain ways, and not in other ways; but the decision of whether to
release it is up to you.

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