AFAIK there are no restrictions on its use. Tolaris (Adam Wojcieszyk) author of HOG sadly isn't active in the Trainz community any more and I've never seen a license agreement included with the software. Absence does not imply consent though.
If you (almost all HOG users do) use MICRODEM (freeware microcomputer mapping program written by Professor Peter Guth of the Oceanography Department, U.S. Naval Academy) to preprocess the dem data you should check it's license to see if any restrictions would apply with payware routes.
Most or all dem data is copyrighted and might have restrictions on certain uses.
Using TransDEM for a payware route requires a special license agreement. You can contact geophil for info on that.
Bob Pearson
IMHO, MICRODEM/HOG is the old fashioned way, TransDEM is the new and better way to do it. I'd rate TransDEM as easier than MICRODEM to learn to use and it does so much more specifically for building routes in Trainz. HOG basically just converts dem data in special form to a gnd file for your route. All the headaches people have with it have to do with getting the right data into the right form for it. I've used MD/HOG for over a decade but TransDEM is the way to go. Provides so much more in a single program. HOG is about 13 yrs old and hasn't been update in over a decade IIRC. 5m grids - it doesn't have a clue. Still writes out a gnd file used by UTC. All version though seem to read it ok but there have been a number of important changes since then.