Schwartz also indicated that Sun would likely use the Community Development and Distribution License to govern open-source Java. Sun's use of CDDL is not a surprise. Solaris and Sun's Glassfish application server are currently open-sourced under the CDDL, which is derived from the Mozilla Public License.
Geir Magnusson blogged on Sun's possible use of the CDDL earlier this year:
What license will Sun use? This has been and will be a source of rampant speculation. Sun needs to balance two things - dealing with their darkest fears around compatibility with the need for a licensing regime in which all players can innovate and control their own IP. Clearly the GPL won't do. While I am a big fan of the Apache License and the full freedom it offers, I can live with the CDDL and other soft-copyleft licenses. At least then, people could invest in innovation, and choose how they wished to license the IP for the things they created that were truly new...
Earlier this month InfoQ talked to Eclipse Foundation Director Mike Milinkovich who suggests that a way for Java to be truly free and independent would be to use an Eclipse-style governance model.