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The patent grant applied to any use of the software including in proprietary software. It's not much of a permissive license if you can't actually use it permissively due to patents. OIN is based around Linux specifically which is a lot different and even somewhat harmful.
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At the moment, Google is against software patents and they use Apache 2 for almost everything that's not a fork of an existing project. Could change though, since they own a ridiculous amount of patents and keep acquiring more. Facebook seemed to have a similar position before...