On Tuesday 27 May 2008, Casey Dougall wrote:
> http://www.copyright.gov/help/faq/faq-general.html#mywork

This is in the US, and I assume Richard is in the UK.

>  why do people use powered by and in what context

Promotion, of the thing they're 'powered by', I would think.
If I made a kick-ass public site using someone else's stuff, it would be nice 
to be able to say they help with it.

The license of the 'powered by' item may also *require* such a notice 
(i.e. 'creative commons attribution share-alike') or prohibit one(!).

> what is the best way to add these (including the copyright) to your software

Ask a lawyer :-)
Followed by a copy writer (someone who edits, not the other sense!).

I'd be tempted, as my/our code is in a source control system that can prove 
when we created it, to just go with something simple, in which case either of
"FooApplication, powered by BazFramework. Copyright Something #year(now())#."
or 
"FooApplication, copyright Something #year(now())#. Powered by BazFramework."

Some 'powered by' items include icons/buttons too, which may look nice if they 
fit the theme of your site - but check if you are allowed to use them without 
permission and/or modify them.
-- 
Tom Chiverton

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