Adobe is doing it with Flash. Sun/Oracle does it with Java. FOSS projects do it even with C/C++ code. Javascript, HTML, AJAX, PDF, .doc.
Microsoft claims that they have developed a "standard" called .net, so it's their responsibility to maintain the ecosystem in a manner that makes .net code portable.
>If I was to take their distro and start selling it as Red-Hat Enhanced Pro Super Cool version what you think their response would be.
Now you're just trolling. Trademarks are entirely separate from copyright and patents. Both Red Hat and Google in fact encourage companies to take their code and build on top of it. Of course, Google keeps some things, like Gmail and Maps closed source, but they don't pretend that they are standards or available for anyone to use as they please.