Thanks. If they're distributing updated firmware, that would seem to make the first-sale
question irrelevant.
B/t/w - when I referred to "modifying the software" I meant "modifying the device's software".
That is, modifying the device by changing the software inside it. Obviously, loading new
software into the device, whether modified or unmodified, would bring them under the license
terms.
I also don't think the "branded for..and only made available through..." would make any
difference in license terms - as long as they were buying and reselling a packaged device, I
think first sale would apply. But, as noted, IANAL, and it's all irrelevant if, as you say,
they are also distributing firmware downloads.