Q: Can I release a noncommercial game that uses the “Unreal Tournament 3” assets included with UDK?
A: Yes. You can use UT3 assets included with UDK for a noncommercial game, but not UT3 assets not included with UDK.
Q: Can I release a commercial game that uses the “Unreal Tournament 3” assets included with UDK?
A: Yes, with one exception. You may not release anything marked as a SkeletalMesh in the Content Browser in a commercial UDK application.
Tactica is correct If you click that "Licensing" nav button at the top of the screen (it's kind of hard to miss,) and click on the massive text to the right that says "Read UDK Licensing FAQs," it's a bit further than halfway down the page.
This is a case of the FAQ answering a specific detailed question. I'll see whether we can update it -- if in doubt, simply read the EULA/ license agreement as it's fairly straightforward :-)
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