What does the DFSG mean by no discrimination? Doesn the GPL discriminate against companies making proprietary software?
The intent is to prevent prohibitions against use by people fighting their own government, or building weapons of mass destruction, or Jews, or the French Postal Service. The DFSG contains a few more examples. The GPL does not discriminate against companies that want to make proprietary software based on GPLed code because they are given the same rights to GPLed software that anyone else has. They happen to also want the right to sell non-free derivative works, but no one is given that right so this does not constitute discrimination.