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This license is found in several components in TeXLive, mostly in components originating from BibTeX.

The FSF's rationale regarding the LaTeX Project Public License 1.2 applies to this specific scenario:

 This license contains complex and annoying restrictions on how to
 publish a modified version, including one requirement that falls
 just barely on the good side of the line of what is acceptable: that
 any modified file must have a new name.
 The reason this requirement is acceptable for LaTeX is that TeX has
 a facility to allow you to map file names, to specify “use file bar
 when file foo is requested”. With this facility, the requirement is
 merely annoying; without the facility, the same requirement would be
 a serious obstacle, and we would have to conclude it makes the
 program non-free.

Thus, this license (and its variants) are free but GPL incompatible, but only on TeX files. If this license were applied to unrelated code, it would almost certainly be non-free due to the renaming restriction.

Original License Text

        % Copyright (C) 1985, all rights reserved.
        % Copying of this file is authorized only if either
        % (1) you make absolutely no changes to your copy, including name, or
        % (2) if you do make changes, you name it something other than
        % btxbst.doc, plain.bst, unsrt.bst, alpha.bst, and abbrv.bst.
        % This restriction helps ensure that all standard styles are identical.
        % The file btxbst.doc has the documentation for this style.


There are several variants of the Bibtex license which, while worded differently, evaluate to the same meaning.

%%%     license         = "Unlimited copying and redistribution of this
%%%                        file are permitted as long as this file is
%%%                        not modified. Modifications are permitted,
%%%                        but only if the resulting file is not named
%%%                        path.sty regardless of case",
%% This file may be modified for individual use.
%% A modified version of this file may not be
%% distributed under its original name.