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No, that's not true. "Freeware" is a viable term in that it has a different license than public domain.
http://en.wikipedia.org/wiki/Freeware
"Public domain" is just that - it belongs to the public who can do whatever they want with the material.
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So the term freeware is made up as well. But I thought companies could make games free without having to relinquish the rights to them.
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That is correct. "Freeware" is software that is made available to the public for free; however, it is still owned under copyright by the software company or developer. The public can legally distribute freeware, but cannot alter or modify it without express consent of the copyright holder.
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Yes, but my point was that freeware is not a legal term. It's a term that describes software that has a license that allows anyone to spread it. You won't find the term in a lawbook like Public Domain. Or maybe you will, I'm not an expert on this.