Violation? They proudly reply in their article in http://www.linuxdevices.com that they use Linux, that they embedded a version of Red Hat, etc.
It's likely that they didn't modify anything in the kernel and just used some stripped-down C-libraries to make everything fit.
Right. They're distributing products licensed under the GPL, so sections 3-a and 3-b of the GPL apply.
Thus they can either a) accompany it with the source code, or b) accompany it with a written offer to give any third party a copy of the source code.
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