If I use MIT-licensed components in my software, can my customers resell it?

Question

My amateur reading of the MIT license suggests that any software is distributed to my customers containing any MIT-licensed components can be freely re-distributed in its entirety.

Permission is hereby granted [...] to deal in the Software without restriction, including [...] the rights to [...] distribute [...] copies of the Software.

The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.

It's not clear whether "the Software" refers to the entire application, or just the individual MIT-licensed component. So which is it?

Answer 1

According to Wikipedia, "the Software" refers to just the MIT-licensed component.

The article claims

It is a permissive free software license, meaning that it permits reuse within proprietary software provided all copies of the licensed software include a copy of the MIT License terms and the copyright notice. Such proprietary software retains its proprietary nature even though it incorporates software under the MIT License.

Here's the license (from OpenSource.org):

The MIT License (MIT)

Copyright (c) <year> <copyright holders>

Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

I've highlighted the important sentence where it appears to me to define the term "the Software" as "this software and associated documentation files", referring to the component covered by the MIT license.