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If the code is GPL then shouldn't WhatsApp need to be open source? Or did they get a different license?

The only thing listed at https://www.whatsapp.com/android/ are some changes to qcom as per the LGPL.

I think they're talking about the protocol like "keep around these keys and exchange this", but implemented with proprietary code that doesn't use any of Moxie's C implementation which is indeed GPL.

Nope, WhatsApp were given a different license. Unlike ChatSecure, who until this most recent change, were locked out from iOS.

It's good to see.

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