@jeffcliff @p @scathach @lispi314 >software that has never been distributed except to a single/couple clients, along with source code
That is free software in the trivial sense, as all of its users have freedom (the clients paid for it to be written, therefore they are the copyright holder unless there is some agreement as to who the copyright goes to).

The freedom to share software also includes the freedom to choose not to share the software at all.