Just an update. The latest version of the nvidia cg toolkit now comes
with the following license (attached)

Notes of interest are:

- "Rights and Limitations of Grant.  NVIDIA hereby grants Customer the
following non-exclusive, worldwide, royalty-free, non-transferable right
to use the SOFTWARE, with the following limitations:"

- "Rights. Customer may use, reproduce, distribute, publicly display and
publicly perform the SOFTWARE."

- "No Modification.  The SOFTWARE may be redistributed providing that
distributed Cg compiler and runtime binaries are unmodified, except for
decompression and compression."

I believe this should be satisfactory enough for it to be able to enter
Debian non-free and propagate its way into Ubuntu.

** Attachment added: "The latest cg toolkit license (May 2010)"
   http://launchpadlibrarian.net/48101701/license.txt

-- 
License change, time to package it up
https://bugs.launchpad.net/bugs/284750
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