Open Sourced doesnt mean someone doesn't own it. It means that the code for the software is available, you can modify it, and redistribute it. Different types of licenses dictate how you can redistribute it, and whether or not you need to release your own coding updates.
This post sums it up quite well.
http://androidandme.com/2009/09/news...d-controversy/
The crux of the issue was not what Cyanogen was doing with Android, but the CLOSED SOURCE apps that belong to Google.
Sorry if you can't understand that.
Quote:
We make some of these apps available to users of any Android-powered device via Android Market, and others are pre-installed on some phones through business deals.
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In Google's own words. Google is protecting their business deals. I would imaging this means that they are charging Manufacturers, or Carriers for the Google Experience.