Regarding game licensing

I was poking through DRIVE's game files and I opened up the "main.cs" file, and what I found inside confused me a bit.

//-----------------------------------------------------------------------------
// Copyright (c) 2012 GarageGames, LLC
//
// Permission is hereby granted, free of charge, to any person obtaining a copy
// of this software and associated documentation files (the "Software"), to
// deal in the Software without restriction, including without limitation the
// rights to use, copy, modify, merge, publish, distribute, sublicense, and/or
// sell copies of the Software, and to permit persons to whom the Software is
// furnished to do so, subject to the following conditions:
//
// The above copyright notice and this permission notice shall be included in
// all copies or substantial portions of the Software.
//
// THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
// IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
// FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
// AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
// LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING
// FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS
// IN THE SOFTWARE.
//-----------------------------------------------------------------------------

I'm not that great with legal stuff, but from what I understand, this is giving the user permission to sell, distribute, copy, and modify (as well as more) the game and the game's files.

Doesn't this mean that one person could purchase the game, and then sell/give copies of the game to anyone else, therefore cutting the devs out of any profit? Of course, the distributor must include all of that copyright information in the copy, therefore making it impossible for them to claim that they created the game, but still.

Permission to modify and use the game I can see making sense, but permission to copy, distribute, and sell the game does not make sense to me.

Am I reading this incorrectly/am I missing anything?
What is the logic behind this?

 

It's the licensing for Torque3D, which is open-source.

 

Ah, I didn't know that. Thanks, that makes sense