ProGuard is copyrighted, but the distribution license provides you with some rights for modifying and redistributing its code and its documentation.
ProGuard is distributed under the term of the GNU General Public License (GPL), as published by the Free Software Foundation (FSF). In short, this means that you may freely redistribute the program, modified or as is, on the condition that you make the complete source code available as well. If you develop a program that is linked with ProGuard, the program as a whole has to be distributed at no charge under the GPL. I am granting a special exception to the latter clause (in wording suggested by the FSF), for combinations with Apache Ant, the Sun J2ME Wireless Toolkit, and the Eclipse Platform.
The user documentation represents an important part of this work. It may only be redistributed without changes, along with the unmodified version of the code.