This sounds a lot like the ordeal with Napster and Metallica, for those who followed it. Some said they were splitting hairs when they endorsed tape swapping, but sued for mp3 swapping. Their reason? Well, tape swapping is among fans, and broadens their fan base. It's local. It's small. It's grassroots. There's no mass rip off. No outside corporations involved. They claimed tape swapping gave them their original start.
Seems to me this is the same thing. By giving, loaning your copy, you are really just opening SE4 (and Shrapnel) up to new people. Word of mouth is more loyal than anything in my view.
What I am trying to say is, you have Lars on your side.
