Liability WRT Access to UNIX Source Code

[Joe Carfagno]

A question about liability with respect to access to UNIX source code... 
Here's the situation.  Suppose X University signs a source code license
Xref: u1100a net.unix:1516 net.legal:813

with AT&T and Y Company (h/w manufacturer who did the port) and it is
the standard one where the school agrees not to divulge source code.
 
Most machines I have seen have read permissions set for "others"
for all the source files so anyone can read and copy them.  This
includes the kernel and commands - the argument being that they are a
great way to learn C and UNIX.  Suppose a student makes a copy of a
key command or the kernel, hacks it up (makes some improvements), and
tries to sell it.  Is the University liable for breaking the contract,
or is the student?
 
Should the source code be protected or should it be open to all users???
Are there any systems out there that protect the source code???
I hope to gather some information and opinions on this subject.
Please UNIX mail the responses to me, or post them on the net if an
interesting discussion can be started.  Thanks in advance.
 
Joe Carfagno   ...!u1100a!joec