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Hi Jeremyglebe, 

Im happy you like my assets :) 

I'm not familiarized with Phaser, but what the license terms mean is that you shouldn't used my assets to sell or distribute for free to other people.  But you can use them to make commercial or non-commercial video games or other audiovisual projects. 

Im no really sure if that answers your question, if you need to ask me more detailed information we can chat at Twitter @Krishna_Palacio

Have a good day! 

I do not have Twitter, unfortunately. :(

Some engines do not use embedded or archived images. This means that hypothetically someone who downloads/buys the game could simply take the images out of the game's folder. While this is not intended (and would be a violation of the game's license as well) it is not hard to do.

Some licenses require that assets be hidden or archived in some manner, which means that the assets simply cannot be used with engines that would leave them exposed.

Your license does not specify that assets must be hidden/archived/embedded, so I wanted to be clear if I could make a game which is not intended to distribute your images, but in which people may be able to obtain the images easier than if they were archived.

To be totally clear what I mean, this is what the file structure might look like with non-embedded assets:
game_folder/
        game.exe
        assets/
                tilesets/
                        minifantasy-tileset.png
                images/
                sound/

And finally: The reality is I would actually like to use these assets in particular for an academic project. So I wouldn't even really be "distributing" it in the traditional sense. Rather, several people at my university would see the game and in theory could extract it's assets. (Though I would note that they should not)

Thanks for the detailed explanation Jeremy.

The license doesn't have any engine restriction. You can use the assets :)