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Let's get another definition. This one is from wikipedia: Proprietary software is computer software licensed under exclusive legal right of the copyright holder. The licensee is given the right to use the software under certain conditions, while restricted from other uses, such as modification, further distribution, or reverse engineering.

As far as I am aware of, any user of WebM are NOT restricted from modification, further distribution, or reverse engineering. The beauty of the current licencing is that it can't be revoked; it is already free. Google can develop future versions and lock it down (suicidal move, though), but as it is the community has its hands on it.

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