What
 is open source? Open-source software is software that makes the source 
code freely available, for anyone to see and use. There are different 
open-source licenses that have different use conditions, from the GPL 
(GNU General Public License) -- which allows "free distribution under 
the condition that further developments and applications are put under 
the same license" -- to more liberal licenses like the Apache License, 
which doesn't require modifications to be open and have the source code 
available.  Android uses both of these licenses, and we'll have a look 
at them in turn.
The Linux kernel that is
 used in the OS is covered under the GPL.  This means that any changes 
made to the source code must be made available when a binary (geek-speak
 for a compiled, executable piece of software) is released to the 
public.  This means manufacturers like HTC, Samsung, Motorola and the 
rest must release the kernel source-code for any devices they sell at 
the same time they begin selling them.  For the most part, hardware 
manufacturers are pretty good about doing so, but they often miss the 
time frame and release the source code a little later than we would 
like.  These are the code releases you see us mention -- the kernel and 
other open-source "bits" that are covered under the GPL.
The
 Android OS source code is released mostly under the Apache License. 
 Anybody is allowed to download the source code and change it however 
they like, but they are not required to make their changes available in 
source code form to the public.  This is why we can't change and 
recompile things like HTC Sense or MotoBlur -- the changes to the base 
Android source code aren't available to us.  While many folks (myself 
included) don't like this situation very much, it does make sense from a
 business standpoint.  If manufacturers had to share all of their 
secrets, there wouldn't be as much monetary incentive to innovate, so 
the source was offered with a far more liberal license.  It certainly 
worked, as we see devices from many major players in the electronics 
world.
ref :
http://www.androidcentral.com/what-open-source-android-z
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