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The actual problem is that the license they are using is neither a valid free software license nor a valid open source license. The GPL would honestly be their best option if they wished to build a bigger community around Source engine modding, but I doubt that will ever happen.

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No, it would not be, as the GPL would eliminate the core sentence of their current license:

> You may, free of charge, download and use the SDK to develop a modified Valve game running on the Source engine. You may distribute your modified Valve game in source and object code form, but only for free.

This would be prohibited by the GPL, as it eliminates fundamental freedoms (the right to sell the product).

This sentence is (obviously) very important to Valves ecosystem.

The GPL does not eliminate the right to sell the product.

http://www.gnu.org/philosophy/selling.html.en

This is what the parent wrote.

Edit: "it" refers to the Valve License (AIUI)

You're right, I've misread it the first time.

That's correct, and Valve would lose that clause.

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