The sqlite command-line utility (sensibly) links against readline if it is present. Readline is licensed 
under the GPL. 

Folk who wish to distribute their version of the sqlite utility under a license other than GPL may want to 
consider using the BSD {link: http://sourceforge.net/projects/libedit/ libedit}  and read the thread 
around {link: http://sources.redhat.com/ml/guile/1999-02/msg00210.html Jim Blandy's comments} 
where the guile (lisp library) folk deal with a similar issue.

--Derek

**readline-enabled SQLite on Mac OS X**

To include readline support on Mac OS X, do the following --

In latest version of readline source (4.3 when I did this), edit support/shobj-conf:
      Inside the darwin*|macosx* configuration...
   Replace:  SHLIB_LIBS='-lSystem'
   With:       SHLIB_LIBS='-lSystem -lcurses -lgcc'

  > ./configure
  > make
  > sudo make install

readline headers will get installed most likely under /usr/local/include

Then, in the SQLite source 

  > ./configure

Edit the Makefile:

  # Compiler options needed for programs that use the readline() library.
  #
  READLINE_FLAGS = -DHAVE_READLINE=1 -I/usr/local/include/readline
  
  # The library that programs using readline() must link against.
  #
  LIBREADLINE = -lreadline
  
Then...

  > make
  > sudo make install

You now have a happy, readline capable SQLite. (thanks to eno and instructions on the web)

-- pkishor