I get what they're trying to do, and that is to help the gaming industry while trying to keep the NFT people from using it. I could see a lot of fantasy games using this as part of an occult theme.
I think a better approach is to have a website where you can track the creation of the images, and then look to see if any NFTs were created with the software in violation of the license.
> I can use the images in a product, but not sell them directly? The transformative line is ill defined.
I think the intent is the same as we frequently see with stock images and clip art, and sometimes with other art assets. It's a "no compete" clause. They don't want someone using the tool to, say, generate 500 circles and then try to sell that for $5, undercutting the sales of the tool.
I can use the images in a product, but not sell them directly? The transformative line is ill defined. Can I sell the images if I use them in an artwork? If it’s a major part of my game can I sell t-shirts with it? Other merch? If so the question becomes where’s the line shifting back the other way. Surely I can’t just apply a filter to the images and then sell them. There’s a completely I’ll defined line, it’s a dumb restriction.
You’re better off just spending 20 minutes making something similar in Illustrator yourself and avoiding the silly legal minefield this thing is trying to set out for you.