That is new to me, where does it say that?

eswat · on Nov 5, 2009

All the info is on their Licensing page: http://udk.com/licensing.html

As long as you're not using a UDK app to generate revenue, it's free.

And don't worry about the bit saying "[you'll need to buy a commercial license to] distribute an application you've created using UDK", it was cleared up by Epic shortly after: http://www.shacknews.com/laryn.x?id=21329409#itemanchor_2132...