They cannot. The requirement from Free software (and from open source software) do not allow for such a restriction in the license. It is not clear how respected this is going to be (see qmail for an example where the license is not free, but almost everybody uses it anyways as-if).People who wish, for instance, to create an open source project which specifies that Israelis cannot use it are welcome to it.
In any case, that goes against item 5 on OSI's requirement - "No Discrimination Against Persons or Groups". Such a license cannot be approved.
Shachar
-- Shachar Shemesh Open Source integration consultant Home page & resume - http://www.shemesh.biz/
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