Linux to Power Most Motorola Phones
raffe writes "Motorola will begin selling its first cell phone based on Linux this year and says most future models will follow suit, a major sign of the growing popularity of operating system outside its stronghold on high-end computers."
Linux is GPL so any kernel modifications must be posted. However, loaded modules can be held closed. Also all software running on the Linux kernel can also be kept a secret.
As the article says, the custom software will run in Java running on Linux, so it will be a JVM hosted by Linux, but Linux will probably not be visible to the end user.
And when speaking about Java applets running on phones. That has been done by both Ericsson and Nokia for a while now.