Liteware is a term for software that is distributed freely in a version having less capability than the full for-sale version. It's usually designed to provide a potential customer with a sample of the "look-and-feel" of a product and a subset of its full capability. Liteware can be considered a type of shareware (where shareware also includes products distributed freely, usually on a trial basis, that do have full capability).
An example of liteware is HTML Assistant Pro, an HTML editor. We tried their liteware version, which allows you to create HTML files (Web pages) and shows you, but doesn't let you use, table and form creation facilities. Since we liked the liteware version and needed all the capabilities, we ordered the full product.