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A license agreement, or a contract in general, cannot permit either party to violate the law. What you're describing in this scenario, and what has actually happened in some cases, is effectively theft of use and arguably fraud.

Fraudulent terms of service are not above the law, nor are they above basic expectations in society of fair dealing. You can try to litigate this any which way you choose, based on the language contained in the contract/TOS, and it fundamentally does not matter. At some point, something has to give and it ends with burning down buildings and building guillotines. History is full of abundant lessons about the supremacy of social mores and standards that suborn the law, and the supremacy of the law over the specific parties of any given contract.



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