I know of at least one other temporary promotional giveaway by Sierra, Red Baron. These giveaways seem to coincide with the time when sequels/updated remakes of respective games were released, and also back in the early 2000s DOS seemed like a platform that would become completely unsupported.
However it would be nice to know for sure if the game can be distributed or not. It is my understanding that currently Red Baron is sold from GOG.com while Caesar isn't commercially available anywhere.
[Edit] Upon the freeware release, Impressions added an installation instructions addendum which says:
Which kind of suggests that the game went public domain.PLEASE NOTE:
This program is unsupported. Neither Impressions nor Sierra On-Line will be providing customer service or technical support or this title. On the other hand, you did get it for free.