Is there a specific license clause that allows free distribution of
SWF files? I realize that authoring and rendering tools have to be
blessed by Adobe. But is there a clause in the license agreements or
Adobe FAQ that mentions that SWF file can be freely distributed/copied?

The closest I have seen is this
http://www.adobe.com/licensing/developer/fileformat/faq/#item-1-4


We are starting a new project using Flex 2 in my compnay but legal
would like to get an aswer to this before feeling comfortable. 









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