Stupid question I know ( at least in my opinion), but an acquaintance of mine insists it is so - so I had to ask to lay it to rest.

You are not allowed to distribute GOG games when you buy them? That is - make copies of the setup files and send them to friends and so forth? DRM free is one thing, but all out "Do with it as you please" rings completely false in my head.

(Feel free to provide a source if you have anything to provide)

GOG politely asks you (I think it's somewhere in the FAQ) to treat the games you buy as you would treat a book or something similar. Which means: Lend them to your friends, but don't use them yourself while you do. Which is pretty forthcoming from GOG considering that only one person (i.e. you) bought a license.

Obviously, mass distributing a single game you bought among your acquaintances will not do GOG any good and isn't allowed either.

Edit: Actually, I can't find the old FAQ anymore and the policy seems to have changed. From the current FAQ (section #9):

Can I install one game both on my laptop and desktop PC at home?
Yes. We do not limit the number of installations or reinstallations, as long as you install your purchased games on PCs in your household. So yeah, if you've got a render-farm in the basement, you might actually break the world record for the number of legal Fallout installations in one household. However, if you think about installing your game on a friend's PC or sharing it with others then please don't do it, okay?

http://www.gog.com/en/support/policies/terms_of_use

"GOG.com ("Service") is operated by GOG Limited ("GOG") and accessed by you ("User") that permits you to purchase and download digital content such as but not limited to video games for personal, non_commercial use under the following terms and conditions"

"You agree that the Service, including but not limited to text, editorial content, graphics, artwork, photographs, music, sound, video, screen shots and software, contains proprietary information and material that is owned by GOG and/or its licensors, and is protected by applicable intellectual property and other laws, including but not limited to copyright. You will not use such proprietary information or materials in any way whatsoever except for use of the Service in compliance with the terms of this Agreement."

" You agree that you shall not use the Service for any illegal purpose or in a way that will breach the terms and conditions and that you shall not use the Service to violate the rights of a third party, including without limitation intellectual property rights."


http://www.gog.com/en/support/website_help/downloads_and_games:
"9. Can I install one game both on my laptop and desktop PC at home?
Yes. We do not limit the number of installations or reinstallations, as long as you install your purchased games on PCs in your household. So yeah, if you've got a render-farm in the basement, you might actually break the world record for the number of legal Fallout installations in one household. However, if you think about installing your game on a friend's PC or sharing it with others then please don't do it, okay?"

Distributing the games to your friends is definitely not legal, but the absence of DRM means the software won't prevent you from doing it anyway. When you buy a game here, it is licensed to you personally, not to all of your friends, obviously.

From the GOG EULA:

1.License. Company grants you a non-exclusive, non-transferable license to use the Program, but retains all property rights in the Program and all copies thereof. This Program is licensed, not sold, for your personal, non-commercial use. Your license confers no title or ownership in this Program and should not be construed as any sale of any rights in this Program. You may not transfer, distribute, rent, sub-license, or lease the Program or documentation, except as provided herein

People seem to confuse the ability to copy files and GOG's inability to identify where the files go with a right to distribute.