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Eli copyright - too restrictive?



I've had occasion to use Eli as part of my course - it's a compiler generation
system, and apart from its error reporting, is a _very_ slick system.
(lex/yacc generate a lexer and a parser - Eli generates the whole wretched
compiler.) The license, from the README, is included below; upon reading it,
I get the distinct feeling that Eli would have to go into non-free, if I
ever get around to packaging it up. (yes, I should be studying...so sue me,
I've had enough for the day :)

			LICENSE AGREEMENT

The Regents of the University of Colorado hereby grant you a
non-exclusive license to use the program contained in this directory,
subject to the terms and restrictions set forth in this License
Agreement.

The software and documentation enclosed are copyrighted with all rights
reserved.  Under the copyright laws,  the software and documentation
enclosed herein may be copied only for normal use of the software or
for making a backup copy.  Such copying rights extend to any other
users who are part of the same organization, provided that they observe
the terms and conditions set forth herein.  The same proprietary and
copyright notices must be affixed to any permitted copies as were
affixed to the original.


			NO WARRANTY

BECAUSE THE PROGRAM IS LICENSED FREE OF CHARGE, THERE IS NO WARRANTY
FOR THE PROGRAM, TO THE EXTENT PERMITTED BY APPLICABLE LAW.  EXCEPT
WHEN OTHERWISE STATED IN WRITING THE COPYRIGHT HOLDERS AND/OR OTHER
PARTIES PROVIDE THE PROGRAM "AS IS" WITHOUT WARRANTY OF ANY KIND,
EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE PROGRAM IS
WITH YOU.  SHOULD THE PROGRAM PROVE DEFECTIVE, YOU ASSUME THE COST OF
ALL NECESSARY SERVICING, REPAIR OR CORRECTION.

IN NO EVENT UNLESS REQUIRED BY APPLICABLE LAW OR AGREED TO IN WRITING
WILL ANY COPYRIGHT HOLDER, OR ANY OTHER PARTY WHO MAY MODIFY AND/OR
REDISTRIBUTE THE PROGRAM AS PERMITTED ABOVE, BE LIABLE TO YOU FOR
DAMAGES, INCLUDING ANY GENERAL, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES ARISING OUT OF THE USE OR INABILITY TO USE THE PROGRAM
(INCLUDING BUT NOT LIMITED TO LOSS OF DATA OR DATA BEING RENDERED
INACCURATE OR LOSSES SUSTAINED BY YOU OR THIRD PARTIES OR A FAILURE OF
THE PROGRAM TO OPERATE WITH ANY OTHER PROGRAMS), EVEN IF SUCH HOLDER OR
OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

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