One could say the same for you. You were buying one product and sharing it with 2 other people instead of buying three product.
This speaks to the larger issue of DRM, and the gray area that the law has yet to define. Companies have the right to protect their copyrights, and people who purchase content have the right to use it as they see fit. Currently with digital content the existing rules are unclear.
Your role as a moderator enables you immediately ban this user from messaging (bypassing the report queue) if you select a punishment.
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