I have an idea for a typography site. The site would be community-based and populated kind of like a wiki. Without saying too much, the site would ask members to download a Flash file, export a swf for sIFR use, and upload to the site.
The swf file would be engineered to only work on the site, and also be watermarked. The site would then display it for educational and inspirational purposes, and most definitely not redistribute them (not that they could in any usable manner considering the user never upload the fonts or original Flash file, only the swf) and most definitely not be selling fonts.
Considering no one besides the site in question would be able to use the swf, would this be illegal? Technically, I don’t think the site would be doing anything illegal, but they may be asking people to violate their license with their fonts.
I have been researching as much as possible, but this is a grey area for which I am unable to really find a good answer. I am very curious to hear some opinions.