I can only say that clause was not worded that way when last I checked the software license. I have to assume Apple has modified it over the last few months, and I stand corrected.
To associate a device to your Apple ID: iTunes Store- Associating a device or computer to your Apple ID
Interestingly, the Authorization is in iTunes (not the App Store, as described in the Usage Agreement). Also, some of the step in that article are not correct (the menu item doesn't exist). I guess Apple is dealing with quite a bit of change right now (Cloud, App Store, multiple AppleID's) and it's gonna take some time before this all gets sorted out.
Thanks Kappy, for your help and for sharing your thoughts and experience. You've always been a excellent source of help to people here on this site.
I left you a link above about associating devices with an Apple ID, so check it out.
We have discussed this situation to a great extent. The license agreement implied that John can sell the hardware with the original Lion software that was pre-installed. Paul could associate his Apple ID with the software. This was a one-time permission. Thereafter Paul has to buy Mountain Lion under his own Apple ID. See:
A. If you obtained the Apple Software preinstalled on Apple-branded hardware, you may make a one-time permanent transfer of all of your license rights to the Apple Software (in its original form as provided by Apple) to another party, provided that: the Apple Software is transferred together with your Apple-branded hardware; (ii) the transfer must include all of the Apple Software, including all its component parts, printed materials and this License; (iii) you do not retain any copies of the Apple Software, full or partial, including copies stored on a computer or other storage device; and (iv) the party receiving the Apple Software accepts the terms and conditions of this License. For purposes of this License, if Apple provides an update (e.g., version 10.8 to 10.8.1) to the Apple Software, the update is considered part of the Apple Software and may not be transferred separately from the pre-update version of the Apple Software.
B. If you obtained your license to the Apple Software from the Mac App Store, it is not transferable. If you sell your Apple-branded hardware to a third party, you must remove the Apple Software from the Apple-branded hardware before doing so, and you may restore your system to the version of the Apple operating system software that originally came with your Apple hardware (the “Original Apple OS”) and permanently transfer the Original Apple OS together with your Apple hardware, provided that: the transfer must include all of the Original Apple OS, including all its component parts, printed materials and its license; (ii) you do not retain any copies of the Original Apple OS, full or partial, including copies stored on a computer or other storage device; and (iii) the party receiving the Original Apple OS reads and agrees to accept the terms and conditions of the Original Apple OS license.
C. You may not transfer any Apple Software that has been modified or replaced under Section 2K above. All components of the Apple Software are provided as part of a bundle and may not be separated from the bundle and distributed as standalone applications. Note that the Apple Software provided with a particular Apple-branded hardware product might not run on other models of Apple-branded hardware.