Hmm. So, first, the file refers to a modified copy of the Alladin free public license, from a kit for implementing filesystems. I'm kind of boggled that someone would start from the Alladin license, but since I have no idea what modifications they made, I have no idea whether it's free.
However the author of the software in question was working for the part of MIT responsible for Kerberos around that period of time. I suspect this is a simple case of someone cut&pasting their work from one project to another and failing to fix up the license header. MIT is fairly good about getting copyright assignments so this can probably be cleared up. --Sam

