I'm not familliar with the AppStore's terms, but VLC is licensed under the GPLv2. This means that the distribution of a derived work must be accompanied by a co

I'm not familliar with the AppStore's terms, but VLC is licensed under the GPLv2. This means that the distribution of a derived work must be accompanied by a copy of the license text, and a reference to a place where the recipient (the user) can download the source code. If the app submitted to the AppStore does both of these things, I don't see any violation. Of course, you can't just change the source code and then run the modified app on your iPhone, but you can't do that for a Linux-based router either. I'm not sure what's the problem here, really.