The Strange Origins of TrueCrypt

"open source" is a well-defined term, but there's no logic behind the definition (there's no reason why those 10 and only those 10 rules are necessary for it to be "open source"). Free software has 4 very well-reasoned rules that once you accept the 10 rules of "open source" fall out (as well as a few others that aren't in the OSD).

Ok, but the source code was published, everybody could see it. Of course, according to the definition, you need to actually be able, legally, to modify the SW - and from what I gather from this discussion, TrueCrypt creators had copyright on the source code? (this I did not know)

How do you call SW with public source-code that maintains copyright? Apparently it isn't "open source", but what is it?