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Yes it is allowed, as long as you don't alter the runtime beyond what is documented in the readme that you'll find in the runtime directory.
Thanks for the quick response. I don't mind including the whole JRE folder with all its contents in our installer. Size of installer is not a concern for us. Just want to confirm we don't get into any legal issues by redistributing JRE with our application. Also, do we need to include anything from JRE BCL license agreement in our application license file? The reason for asking is now we are distributing JRE as a subfolder within our application and not asking the user to explicitly install it. Hence during installation user will only get our license agreement screen for acceptance and not Oracles BCL. Do we need to include anything from Oracles BCL in our license agreement?
I repeat: there is a readme in the runtime installation folder that documents redistribution.
As far as I know, keeping the license declarations in the JRE folder unaltered is enough. But I'm just a stranger in a forum, for legal stuff are you really going to take my word for it, or that of anyone else?