Linux is free software. Red Hat doesn't pertain to all Linux. Red Hat does this because it's allowed by GPL. There are also "libre" versions of the Linux kernel which replaces all proprietary additions to the kernel (which do not make the kernel non-free in anyway, more of a matter of morales).
Okay, GNU userland is also completely free. Xorg is also completely free. Almost every popular DE is completely free (exceptions...?). Fedora is a Linux OS that is completely against non-free software and anything that requires royalties (such as the MP3 format). As such it has none (except for a few exceptions concerning device support).
Freedom to distribute (freedoms 2 and 3) means you are free to redistribute copies, either with or without modifications, either gratis or charging a fee for distribution, to anyone anywhere.