. . continues with the license it states. New copies may have a different license if the copyright holder so decides, and certainly updated or revised copies can. A large amount of code is licensed "GPL v2.x or later". Even someone other than the copyright holder can comply with the original license by redistributing under GPL v3.

Microsoft's problem is not about licenses being retroactive. Novell could protect Microsoft by freezing all code in their distribution right where it is now, but they won't, that would be suicide.

Development continues so new and updated modules coming in may be licensed under GPL v3 and would be incorporated. SUSE Linux would now have v3 code in it. Someone cashes in a Microsoft coupon and of course he gets the latest version which has v3 licensed code in it. Microsoft is now a distributor of code under v3.