The correct legal definition for MOD is freeware as you do not charge for the software. The below link is a book that was written on how to sell freeware. Most of the myths out there are that licenses that accompany mods somehow protect them. They don't. You can sell freeware legally by charging a handling and shipping fee.
http://cgi.ebay.co.uk/SARA-BROWN-CD-...QQcmdZViewItem
Since you do not charge a fee for the software you are not selling a license for the software. Thus you can not restrict the distribution of something put out on the web for free downloading.
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