Database Lite vs other embedded servers

I need to develop an application that can use an Oracle embedded version as a 'demonstration' program but also have a requirement for some 'freebee' programs (more or less as a 'sales aid' for the full program).
I'm not sure if Oracles license will allow this (it's free for 'demonstration' versions or so I've read, but whether on the developers machine or the clients is not really mentioned).
The 'full featured' app will run on XE and hopefully later as a full Oracle installation.
Some RDMS like Firebird have an embedded version that one can later scale up to the CS version - from memory other commercial RDBMS have the same functions.
What is unclear from the documentation is whether the embedded version has the same 'upgradability'.
Any suggestions/recomendations welcomed.

Oracle Lite is not really a scaled down version of Oracle enterprise... Oracle XE is the scaled down version. Oracle Lite is used on mobile devices and for synchronization. It can be used as you described. But there is a user named license fee. I am not entirely sure of the structure of the fees for something like that though.

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