Basically in the open source world what is considered software and non software?
I don't know about all of the open source community, but I can give you my stance on it.
In my view, something is software if it contains instructions to let a computer perform certain actions, where those actions are not just "show this content with this formatting".
Is the code concidered non software if you put it into a game which is software?
For me, that depends on what the code does to the game. If it just affects the scenery in which the game is played but does not really affect the nature of the game, then I consider it to be data. If the code really affects the nature of the game, then it is more likely to be software.
For copyright protection, it doesn't matter if your code is considered software or not. For copyright law, it is all the same as books and other literary works.
The reason that we have copyright licenses that are specifically tailored for software is because there are some unique aspects to software that are not found in other copyrightable works.
- Software is routinely and mechanically transformed from a human-readable format into a machine-readable format. This gives rise to the notion of source code in the copyleft/share-alike software license
- Contrary to other works, end-user software is rarely produced by a single copyright holder (or group of cooperating copyright holders). An application is typically linked to one or more libraries that are independently developed. Some consider that this linking creates a new derived work that derives from all input projects. As creating a derived work is only allowed with a license, copyright licenses for software might need to take this aspect into consideration.
This does not mean that copyright licenses tailored for software cannot be used for non-software works, but some terms and clauses might look a bit strange when a software license is applied to a non-software work.