Railo uses the GNU Lesser General Public license version 2.1 or as it is more commonly known, LGPL v2.1.
There is a pretty good explanation here and even why you shouldn't use the LGPL. The 4cff.org also has an excellent PDF explaining licensing in general.
Yes!
Yes!
Yes!
Yes!
Yes, provided that you've left the license and source intact.
If you modified the source, you must provide us a patch of what was modified.
Railo Technologies offers: Paid Extensions (cluster scope, cfvideo and more!), Professional services, Support contracts with full SLA Training.