[Fsf-friends] Attn: Legal specialists -- License of Splunk server

[Manilal K M]

Hi all,
    I just saw a promotion link in SF.NET regarding a *open source
project*  called splunk server(https://splunkforge.org/). But when I
looked at the License(http://www.splunk.com/index.php/articles/news/66)
of the product it looks weird. In the first part they uses the term
*FREE SOFTWARE* and in the License part they says some restrictions
for use
<quote>
Subject to the terms and conditions of this Agreement, Splunk grants
to You a non-exclusive, worldwide, fully-paid up copyright license to
use, copy, and distribute the Free Splunk Software in binary form only
and only subject to the following conditions: (i) to index no more
than 500MB of peak daily volume of uncompressed data (the "Maximum
Peak Daily Volume�?).
</quote>

My doubt is that, does this come under the definition of Free
Software? If it doesn't it will be misleading to use the term *Free
Software*.

regards
Manilal K M.