Richard Hayes wrote:

What OSI approved licenses allow for the reincorporation of open source code into propriety products.

All of them do.

Before OSI somewhat standardised free software licensing terms
there used to be many wacko licenses.  Some licenses prohibited
all commercial use, many others prohibited use in particular
fields, such as military applications.  Licenses with such
restrictions can't gain OSI approval.

Some OSI-approved licenses have terms and conditions which
may not fit your business plans, such as terms which require
you to offer licensed source code and any dervied works code
to your customers; or terms which force you to grant licenses
to patents you may hold which relate to the licensed software.

As an example, I've used GPLed code in propietary products, as
have Cisco, Intel, Microsoft and many other firms.  Most
companies meet that licenses T&Cs by shipping the sources to
to the GPLed part of the product on a CD enclosed with the
product.  The only trap for young players is that if you
make software updates available via the web you also need
to repeat the offer of the source code with the software
update.
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