What you do not understand is that distributing software under a free license is *not* abandoning one's copyright. For instance you do not have your name, after a (c), on the software Trisquel distributes to you. And neither does Trisquel. The author have the copyright.

The contract you talk about has nothing to do with the opposition free/proprietary. Notice, however, that is the norm for in-house developments: everything an employee produces (during her working hours) belongs to the company.

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