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This 'Demo' was for internal use only. The developers needed to show the (possible) publishers what they had made so far, and this is what they used.
Public demos are rather different in that they're usually made when the game is either already complete, or nearly complete. JJ3 (as far as it seemed to me) was nowhere near completion.
Since the developers originally created the game (with Epic having various rights to it, I believe), they are the ones who could deside where and how this is legal to distribute. The developers could distribute the game to a few private individuals if they wanted, but nowhere do I believe those individuals got the rights to distribute it themselves.
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<div style="float: right; width: 100px; height: 70px; margin: 5px 15px;"><img src="http://madskills.org/monolith/idleserver.gif" style="width: 98px; height: 65px;"><img src="http://madskills.org/monolith/theserver.gif" style="width: 98px; height: 65px; position: relative; top: -65px;"></div><div style="margin: 0 3em; font-size: 80%; font-style: italic;">Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It is not rude, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres.</div><div style="text-align: right; text-size: 80%;">1 Corinthians 13:4-7</div>
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