Let’s consider this scenario:
Person A makes a JS framework. Person B buys it and wants to build a product using that framework, and he wants to sell that product on CodeCanyon.
Does person B have to buy the extended license in order to do this, or the regular license? Once again, the product from person A is a framework, that is build so others can make use of it – for commercial products or not.
An extended license is required. A regular license entitles you to a single use (whether that use is commercial or personal, it doesn’t matter), and does not give you the right to redistribute. The extended license is also single-use, but allows you to incorporate the work into a larger work for sale.
Note there are exceptions that the extended license does not cover. For example, you can’t buy an extended version of a jQuery plugin and create a WordPress version of it for sale on CodeCanyon (without the author’s consent).
See answer below.
Thanks for the answer, I guess that’s good news for me. I was planning to be person “A” 
Cheers
LanceSnider said
You couldn’t buy a slider here and use it in a ThemeForest template. That’s just not fair to author A.
If that’s the case, I think this language is very confusing. Perhaps I’m missing something?
I thought that was the whole purpose of the extended license – to incorporate a product into a larger Work?
LanceSnider said
You couldn’t buy a slider here and use it in a ThemeForest template. That’s just not fair to author A.
It looks like currently this is not something reviewers aware of. From my recent experiences, even a javascript slider purchased (with extended license) from Codecanyon allowed to use within Codecanyon to sell as a wordpress plugin. This is something serious to resolve as with these kind of license terms, it is possible to directly compete the original author’s file (in the same marketplace) just by spending 5x price of original.
I know there are some changes in license coming, can we expect new Extended license terms in the same way you mentioned? That would be a big relief.
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sevenspark said
LanceSnider said
You couldn’t buy a slider here and use it in a ThemeForest template. That’s just not fair to author A.If that’s the case, I think this language is very confusing. Perhaps I’m missing something?
I thought that was the whole purpose of the extended license – to incorporate a product into a larger Work?
oh. I thought it was that too?
ie: I should be able to buy an extended licence of a slider on CodeCanyon and use that in my Wordpress Theme available for sale on Themeforest ? Or is that incorrect?
This is really getting frustrating! I don’t understand anything anymore. What’s the point of the extended license if you can’t use it to build bigger items (buy slider on CC to use it on a theme on TF). It’s really not cool that Envato has kept us in the dark for so long. We really need some straight, honest answers that are official and not “I think it’s like this but it’s just my opinion”.
Edit: if it turns out that you can’t buy a slideron CC to use on TF then there are quite a few items that have to be removed from TF 
Did extended license rules get changed? as I know there are many ThemeForest items that use components/plugins that are sold in CodeCanyon, an author once ask and I give permission because I thought that was okay with extended license 
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