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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Softwares and Software Security

Ravi Textiles Ltd. in Surat buys a licence for 50 users of an accounting package, but the IT head installs it on 80 computers. Which characterisation is most accurate?

This is software piracy through licence over-use. The company paid for 50 users but installed on 80 machines, so the extra copies are unlicensed and can amount to copyright infringement under the Copyright Act, attracting civil and criminal liability regardless of the earlier purchase.

  1. ASoftware piracy through licence over-use, which can amount to copyright infringementCorrect
  2. BA lawful use because the company paid for the software once
  3. CA permitted backup activity under the licence
  4. DOnly a civil matter between vendors with no copyright consequence

Explanation

Installing beyond the number of licensed seats is licence over-use, a form of software piracy. Using copies beyond the licence is an infringement of the owner's copyright, which can attract civil and criminal remedies under the Copyright Act. Payment for 50 users does not cover the extra 30 installations.

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