diff --git a/gpsd.init b/gpsd.init
index 305ccb3..ed5ab52 100644
--- a/gpsd.init
+++ b/gpsd.init
@@ -29,20 +29,20 @@
 # Source function library.
 . /etc/rc.d/init.d/functions
 
-exec="/usr/bin/gpsd"
+exec="/usr/sbin/gpsd"
 prog=$(basename $exec)
 PIDFILE=/var/run/gpsd.pid
 CONTROL_SOCKET=/var/run/gpsd.sock
 
 [ -e /etc/sysconfig/$prog ] && . /etc/sysconfig/$prog
-OPTIONS="-n"
-DEVICE="/dev/ttyUSB0"
+: ${OPTIONS:=-n}
+: ${DEVICE:=/dev/ttyUSB0}
 
 lockfile=/var/lock/subsys/$prog
 
 start() {
     echo -n $"Starting $prog: "
-    daemon $exec -p $PIDFILE -F $CONTROL_SOCKET $OPTIONS $DEVICE
+    daemon $exec -P $PIDFILE -F $CONTROL_SOCKET $OPTIONS $DEVICE
     retval=$?
     echo
     [ $retval -eq 0 ] && touch $lockfile
diff --git a/gpsd.spec b/gpsd.spec
index 0dcffe8..2527a49 100644
--- a/gpsd.spec
+++ b/gpsd.spec
@@ -2,7 +2,7 @@
 
 Name: gpsd
 Version: 2.39
-Release: 4%{?dist}
+Release: 5%{?dist}
 Summary: Service daemon for mediating access to a GPS
 
 Group: System Environment/Daemons
@@ -229,6 +229,9 @@ fi
 
 
 %changelog
+* Wed Aug 12 2009 Marek Mahut <mmahut@fedoraproject.org> - 2.39-5
+- RHBZ#505588: gpsd has a broken initscript that fails to launch daemon
+
 * Fri Jul 24 2009 Fedora Release Engineering <rel-eng@lists.fedoraproject.org> - 2.39-4
 - Rebuilt for https://fedoraproject.org/wiki/Fedora_12_Mass_Rebuild