The license of the source code is GPL2. The license of the official
binaries (those I make) is freeware.
Basically you can use and redistribute them both but not charge for
the,. If you redistribute your app you have to say something like
"powered by web2py".
The three think you are NOT allowed to do is:
1) claim you built web2py
2) create a derivative of web2py in violation of the GPL
3) distribute a binary version of web2py other then the one I provide.
You are allowed to bundle web2py (either source or official binary)
with your applications. You have to make clear that you are selling
your application, not web2py, even if they are distributing them
together in the same zip file.
Massimo