Moved to Open Discussion section - nothing to do with new games added to The Arcade.

Using LW doesn't give you permission to download any copyrighted material... so there is no license. Using LW is not illegal, but downloading of copyrighted material may be - depending on your local laws.
Lime Wire » About Using P2P Software Safely
Lime Wire » About Using P2P Software Safely

LW is just one of many apps which connects to the Gnutella file sharing network.
Gnutella - Wikipedia, the free encyclopedia