Google API Search Engine?

[Kfkm09]

I have been using a search engine script based on the Google API. However, in its terms of use, it says, "...And you may not use the search results provided by the Google Web APIs service with an existing product or service that competes with products or services offered by Google."

Wouldn't this mean you aren't allowed to create a search engine using the Google API?

If so, why are there so many of these scripts on Hotscripts.com?

Thanks in advance!