Regarding the C-DIT/Friends issue, its basically not a Free Software vs Proprietary. Its about who is having copyright of the software. The issue wont get solved with the use of Free Software.
I disagree with Arun here.
Free s/w is about *swatantryam* to use, redistribute, change the sources and fine tune the original program to suit one's own needs.
I understand that C-DIT had a contract for development of s/w for the FRIENDS project with one company 'a', and once the C-DIT switched maintenance and future development to company 'b', company 'a' (naturally) got green eyed, and initiated the litigation. If the s/w developed by C-DIT was covered by a standard free license, like the GPL, or at least one of the OSI approved licenses, C-DIT would not have been in the soup it was in.
Yes, thats the point. What required is not *using* Free Software to develop a new solution for 'Friends'. But creating the software under Free Software license agreement. That too with proper agreement.
Proper care must be given in agreements with people working on the new project(saying they will release code in Free Software License'). If that is not done similar issues will come.
The particular 'Friends' issue can be solved even without Free Software license(not that i am suggesting that solution).