That's right, it's a full commercial product the Chinese get to copy, rename, resell,etc, all for free, not a development project like Open Solaris. The two just aren't equivocal, especially since according to the license Sun reserves the right to sue you for patent violation if you modify the Open Solaris project code, much less what they can do if you duplicate the actual Solaris code without approval to do so.
< shakes head at the sheer stupidity >
Shadow already took care of you on the Red Hat issue, so I'll take this part. The whole point of the patent clauses in the CDDL is that Sun can't sue you for patent violation if you modify the Open Solaris project code. Read the comments from Sun, their intent is, and I quote from Sun's Open Solaris project,
"The CDDL provides an explicit patent license for code released under the license. This means that you can use, modify, and redistribute code released under CDDL without worrying about any patents that the contributors of the code (including Sun) might have on the contributed technology."Slam dunk, good bye, good riddance.