Re: A nice donation?
The Linux Foundation doesn't own the copyrights. The copyrights are retained by the authors, so you would have to track down all the authors affected and get all of them all to agree. That won't happen.
That situation is deliberate, as it makes it virtually impossible for one entity to take over the Linux kernel project and take it proprietary. Anybody who is involved in developing it knows that it will continue under the same or equivalent management for the foreseeable future and there's no danger of someone like Oracle buying Linux (like they bought MySQL via SUN) and changing the rules of the game.
What can happen here is Christoph Hellwig, whose copyrights are the basis of the suite, may make a deal which satisfies his concerns. That however doesn't cover any of the other copyright holders who are free to pursue their own cases.
What may happen though is that VMWare will make some sort of deal with the Software Freedom Conservancy by agreeing to stop violating the copyrights by a set date, pay a sum to the SFC to cover their costs, plus pay a sum to a suitable free software group designated by Hellwig (possibly The Linux Foundation). The money will cover past violations, and the promise to stop distributing will prevent future violations. If the kernel development leaders (Torvalds, etc.) are happy with this, they may then use peer pressure to discourage anyone else from going after VMWare.
What won't happen is granting VMWare a license to continue distributing copyrighted kernel code as part of a proprietary product. There are simply too many copyright holders who won't agree to this. Why for example would Red Hat, a major Linux kernel developer who also happens to own the competing KVM hypervisor, agree to this?
This is what VMWare is really concerned about. They've started a project to develop their own drivers, but it will be very difficult for them to have the wide range of hardware support that Linux has. The bulk of the Linux kernel is actually just drivers. VMWare could copy drivers from one of the BDS kernels, but that will give them very limited hardware support. This is why they copied from Linux in the first place.
The other alternative would be for VMWare to open source their hypervisor kernel under a GPL license. That would cover them completely for future distribution, provided there aren't any other third party copyrights in there (other than Linux). They wouldn't stand to lose much by doing that, since there are loads of hypervisors out there already (e.g KVM and Xen, both open source), and VMWare's big value these days is in the management software, not the hypervisor kernel. Hypervisor kernels are a commodity now, and containers (e.g. Docker) are going to eat into their market share anyway. VMWare needs to move up the stack, which they are already doing anyway. Making their hypervisor open source would cement their position as the industry standard. Lots of companies already pursue an "open core" business strategy by choice - "give away the razor, sell the blades".