Originally Posted by Nibelheim
There's definitely a point where it becomes advertising. If you pay money / offer support, and you get your icon/logo shown on the user's screen, then the line's been crossed. Which is kind of the point of sponsorship, to get your brand/product displayed, so perhaps it could be said they're one and the same.
Now, if you kept your sponsor's branding on the website/page where users downloaded your addon, then that would be perfectly fine.
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I totally agree with you that there is a line. But to tell the truth I can't follow you definition of sponsoring and advertising.
I can't see why showing a company's name on my webpage is considered as sponsoring and showing a company's name inside my addon should be advertising.
Imho sponsoring is supporting someone or something with money, services, or whatever to get certain things done and to provide something for the users.
Advertising is to purely promoting something without any value for the users.