>In the early days of Free Software, it was a safe assumption that anyone using a computer had coding skills of some sort -- even if only for shell scripts. As a consequence, many advocates of Free Software, despite a strong focus on user freedoms, had a high tolerance for software that made source available under free terms without providing binaries.
>That was considered undesirable, but as long as the source code could be used it was not disqualifying. Many other ways evolved to ensure that the software was somehow impractical to deploy without a commercial relationship with a particular vendor, even if the letter of the rules around Free Software was met.
>This tolerance for "open but closed" models continued into the new Open Source movement. As long as code was being liberated under open source licenses, many felt the greater good was being served despite obstacles erected in service of business models.
>But times have changed. Random code liberation is still desirable, but the source of the greatest value to the greatest number is the collaboration and collective innovation open source unlocks. While abstract "open" was tolerated in the 20th century, only "open for collaboration" satisfies the open source communities of the 21st century. Be it "open core", "scareware", "delayed open", "source only for clients", "patent royalties required" or one of the many other games entrepreneurs play, meeting the letter of the OSD or FSD without actually allowing collaboration is now deprecated.
>As a consequence, OSI receives more complaints from community members about "open yet closed" than any other topic. Companies of all sizes who loudly tout their love for open source yet withhold source code from non-customers generate the most enquiries of this type. When approached, OSI contacts these companies on behalf of the community but the response is always that they are "within their rights" under the relevant open source licenses and can do what they please.
>Interestingly it's common that the companies involved obtained the source code they are monetising under an open source license, while they themselves own the copyrights to a tiny percentage of the code. They can be considered to have enclosed the commons, enjoying the full benefits of open source themselves -- and celebrating it -- but excluding others from collaboration on the same terms.
https://opensource.org/node/908
TL;DR
>companies brand their stuff open source
>software is actually open-core/source-available/etc.
>OSI contacts company, requests them to stop advertising as open-source
>company refuses; still insists software is open source because 'you can see the source'