Legality of KMZ distribution and viewing

[Nate Mc]

We are a consulting firm that uses Google Earth for a couple uses. We
use ESRI software to develop GIS maps. We map large facilities for
multiple big business clients. We recently got a request to use the
ESRI function, which we bought, that will convert a map to a
compatible GE KMZ file. The client then wants to use the free version
of Google Earth to set up a network link to the file located on their
servers.

Two questions:
Is this a legal procedure on our part? We would be simply charging for
our service to develop a facility map, then distribute the file that
we have created. (I cant see anything about this that is wrong as we
are using licensed software)

Is this legal on their part? can they use the Free version of GE. I
have read all the license agreements for GE. It states within the
license agreement you must not "(d) redistribute, sublicense, rent,
publish, sell, assign, lease, market, transfer, or otherwise make the
Products or Content available to third parties;" also, (e) "use the
Products in a manner that gives you or any other person access to mass
downloads or bulk feeds of any Content, including but not limited to
numerical latitude or longitude coordinates, imagery, and visible map
data;"

None of this really sounds like what they are doing. If anyone is
familiar with ESRI software, they have a comparable product that is
called ArcExplorer which is their attempt to mimic GE, although it a
bad attempt. This software could be used exactly the same way as GE by
opening a KMZ file through a network link.

Please could someone give me their knowledge about this product and
what the legal issues are from a business using this product to just
VIEW a KMZ file.

Thanks so much, hope I can get help!