On this occasion I'll say yes, you may use that code; mainly due the simplicity of the method (how may ways are there to write such a method!?), the fact that it is a method I wrote myself, and that your product is non-commercial. Though had it been a more complex method, or a method written, or modified by somebody else, I would have had to say no.
Having said the above, the colour system is an area that is going to change a lot for the beta-1 release, and in the current development code for that (not in any CVS) this method has been totally re-written anyway
CE.