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You seem to be taking a very guilty-until-proven-innocent attitude here....You're not the only one that considers problems like that, and i'm pretty sure most people can read the copyright law just as well as you can.
Errm...Did you actually read the part you quoted? Making the full code available to a third-party under an NDA along with the CVS logs seems pretty reasonable to me, since the project won't be open-source. If that's not good enough, then what would you suggest, exactly?
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