Based on these explainations:
==========================================================================================================================
Now that we've cleared that up, here is a simplified (IMHO) explanation of
what everybody already said:

RHEL == Linux Kernel + GPL/BSD/MIT ...etc licensed Software + Red Hat
trademarks (artwork etc)

- How must does the RHEL distro cost ?
* 0/-

- How does Red Hat make money, if the cost of the RHEL distro is 0 ?
* Subscriptions, trainings, consultancy ...and maybe more.

- How is the RHEL distro. distrubuted ?
* The sources are available for free on redhat.com and Red Hat provides
CDs/DVDs of the distro. to it's customers (people who buy subscriptions or
undertake trainings ...etc)
=================================================================================================================

Can somebody explain the following clauses in Red Hat License Agreement?

http://www.redhat.com/licenses/rhel_us_3.html

5 Reporting and Inspection

5.1 Reporting. Client will promptly notify Red Hat if the number of
Installed Systems exceeds the number of Installed Systems for which Client
has paid the applicable fee. In its notice, Client will include both the
number of additional Installed Systems and the date(s) on which such
Installed Systems were put into use. Red Hat will invoice Client for the
applicable Services for such Installed Systems on a pro-rata basis and
Client will pay for such Services in accordance with this Agreement.

5.2 Inspection. During the term of this Agreement and for one (1) year
thereafter, Red Hat or its designated agent may inspect and review Client's
facilities and records in order to verify Client's compliance with this
Agreement. Any such inspection and review will take place only during
Client's normal business hours and upon no less than ten (10) days prior
written notice from Red Hat. Red Hat will give Client written notice of any
non-compliance, including the number of underreported Installed Systems, and
Client will have fifteen (15) days from the date of such notice to make
payment to Red Hat for the applicable Services provided to the underreported
Installed Systems. If Client had underreported the number of Installed
Systems by more than five percent (5%), Client will also pay Red Hat for the
cost of such inspection.
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