This happened back in the Cyanogen days where they released it on actual phones (by Oneplus if I remember correctly). They included the whole GAPPS-suite and of course fell under that license agreement.
You are confusing CyanogenMod (the custom ROM for which you supply your own Gapps) and Cyanogen OS (the commercial version of CyanogenMod) that was used by the OnePlus One and OnePlus Two.