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On Wed, Jan 2, 2013 at 1:07 PM, Michal Kottman <k0mpjut0r@gmail.com> wrote:
if anyone finds an encryption library as an alternative to PolarSSL which is not GPL licensed, I would be more than willing to re-license the whole code as MIT/X11.

libtomcrypt is public domain (and we're in the process of releasing LTN12 bindings to it under Eclipse public license; it's under intellectual property review as we speak). I don't know whether it offers all the codecs you're interested in.
 
The other option is to create a "light-weight" compression library consisting only of bzip2 (BSD-like), zlib (own BSD-like license) and liblzma (public domain), which could then be licensed as MIT.

it would makes sense: I think many people are interested in compression without encryption (and maybe the other way around, although it isn't as obvious). We'd certainly love to have ltn12 compression codecs under a commercial-friendly license--actually, if we don't find any, we'll eventually have to write it ourselves. Beyond licensing issues, I think small and focused libraries fit Lua's philosophy better, even if such modular code is harder to write and ship.