Yes, and distributing the DLL may not be an option for some developers (mostly Open Source developers). The EULA for UnicoWS.dll specifies, among other things:
The intentions from the Microsoft chap who pushed unicows and the license on the technical side:
http://blogs.msdn.com/michkap/archive/2005/01/13/352001.aspx A fully open source equivalent: http://libunicows.sourceforge.net/ Roger