Am I allowed to include a JQuery Plugin in my Drupal Module?
Do you intend to publish your module as a contributed module on drupal.org? In that case: Probably not. The page 3rd party libraries on Drupal.org states: 


  This is the policy for 3rd party code libraries in Drupal's contribution repositories.
  
  
  In general 3rd party libraries are forbidden, so do not commit any. Document for your users how to find and install it.
  


After that, it mentions some exceptions.

I understand that it's tempting to include the plugin in your module, but there are some good reasons not to. For instance:


If other modules use the same plugin, having it in the libraries folder will prevent collisions.
Users will always be able to get the latest version of the plugin.
You, as module maintainer, probably do not want to be bugged about releasing a new version every time the plugin is updated.