1) If you are a technology company, this is Harakiri (http://en.wikipedia.org/wiki/Seppuku). You are alienating every developer who is worth her salt. If you have a recruiting arm, and they are trying to recruit, god be with them. Ofcourse, you think people will never come to know, but this has the potential to be a good story and press will pick it up. I will not be surprised if Techcrunch or Wired Enterprise picks this up first.
2) Strategically, this is so uncool. You could have leveraged this open sourcing in several ways. Made the codebase part of your official Github ( ever heard of Bootstrap?) and drummed up participation. If THIS was the product, you could leverage the free PR to accelerate user-acquisition. Nick had some amazing documentation, and he even got SUCH a cool domain for you guys.
3) Eventually, you will lose Nick, who seems quite competent, who will move on to do better things under the umbrella of better employers.
Pretty lame, on several counts.