OK. I sent an email to David Dunham to try to clarify the issue, in a kind of final way. Here's the (substantive) text of what I said:
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Now, as I understand the agreement, releasing games for free will cost you nothing, likewise as shareware. Recently on the Coldstone board you defined shareware as basically anything that isn't done under contract or agreement with a larger publisher - guys making themselves a game and selling it, without any third party marketing it, etc.
So, in a more concise way;
Freeware: what the name suggests: doesn't cost the customer anything. It's free.
Shareware: software that you can sell as an individual or small group, without the intervention publishers, like a deal with, say, Aspyr etc.
Commercial: contracted agreement with a publisher that involves you making the game, and it, promoting it, etc. Your cut is whatever is specified by contract.**
To this, David added:
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**Let me amend the standard - any software that is packaged and sold is also considered commercial. I'm thinking there would have to a contract signed between the developers and cafepress, so that would also fall under my definition of commercial.
Licensing fees would be negotiated with the scope of the development team in mind.**
It appears that packaging and selling your project at all would be considered commercial, whether sold in a brick and mortar store, or over the web. If people are planning to release a demo, and then sell the full game on CD, that appears to be commercial publishing.
But I wouldn't take what I've said here as gospel truth. In fact, if and when you have a game ready, or getting ready to release, I'd recommend emailing Ambrosia, telling them about your game and how you plan to release it, and finding out how they'd treat it in terms of licensing. I assume these games will be treated on a case by case basis, and so I'd recommend emailing to find out about your particular case.
-Andiyar
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"Any good that I may do here, let me do now, for I may not pass this way again"