Ditribution allowed - What does that mean

There are film festivals that allow you to have distribution going into it. Does that mean you can have distribution lined up but nothing is out there yet? Or does it mean you can have your DVD for sale on Amazon and Video for rent on iTunes? Thanks in advance.
 
Most festivals in their submission guidelines and terms will outline exactly what distribution the film may or may not have had.

Some require Premiere - IIRC, Cannes is one of the few that requires Premiere. Some may require US Premiere - meaning it can have had distribution in the home country, but not in the US. Check the terms, many of the bigger festivals also stipulate how recently the film needs to have been made.
 
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