GNU GPL for GCC bent but not broke?

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I'm currently dealing with a vendor who has their own modified compiler which is based off of GCC.  Doing a "<vendor compiler command> -v" yields:

    Reading specs from ./../lib/gcc-lib/<vendor path>/specs
    gcc version gcc-<version> <etc, etc, etc...>

Recently, the company has changed their licensing terms such that they want to license the usage of the compiler itself (several thousand dollars per seat).  Previously, they had licensed their proprietary, front-end IDE, not the GNU-based command-line tools.

I've done this job long enough and dealt with enough sales people to know what's going on here: the representatives of this company which have been appointed to work with us do not understand the technical distinction between their own proprietary tools and the GNU-based underpinnings which make it possible for their tools to work.

I am looking for a confirmation that I am correct in my understanding that any work based off of a GNU project is also subject to the GNU GPL.  At present, I have a copy of the GPL and will forward it to our legal people, but I won't *press* the issue unless I'm certain I know what I'm talking about.

Thanks for any assistance in this matter.



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