keep it free, if you can afford to (Score 1)

You could change the license to require imbedded versions to be made available via a website yours, theirs or both) but allow proprietary packaging and deployment of the code in products. To address Concerns about competition, a reasonable delay between deployment and public availability could be worked into the the license (say 6 - 12 months) that would allow a developing company to stay well ahead of their competitors.

The way I see it, the interest of third parties simply illustrates the need for a imbedded version of FLAC that would be available under LGPL.