The rights and rules according to Joe and Frank

What are my rights when I purchase a theme? I get this question a lot as do many others. It often appears in the RapidWeaver forums as well so I thought I would post my answer here for permanent record: If Joe buys a theme he can use it for whatever he wants, as many times as he wants provided that he does not become either a reseller/distributor of the theme or it's code. Joe can make a website of his own that makes him money. Joe can make a website for Frank that makes Frank money. Joe can get paid for the site he made Frank. Neither Joe nor Frank own the rights to the theme/skin/code (the "look") that makes Joes site or Franks look as sexy as they do. Therefor neither one can distribute this "look" to anyone else in any way, shape or form. If Frank wants to modify the "look" to his site he best be getting himself a copy of RapidWeaver and a copy of my theme. Otherwise he better leave it to Joe who purchased the rights to my theme in the first place. If either Joe or Frank break these rules then they both owe me their firstborn child (preferably a son because I have enough daughters already).