Wow.. i actually read 6 out of 11 pages of posts.
Took me an hour! lol
A couple of things to stir it up:
1) Legally, there should be no tax on a license. Tax is, by part of its very definition, outside of this domain (licenses). So, when the government taxes your software (license, right?), then taxation brings it into the domain of a product (ownership, not license).
Now, what we have here is mixed signals. It can only be one or the other.
If people pay taxes on software then taxes mean, truly, product ownership, and when people own something it is there's to do with as they please.
This bit of irritating truth in the law bothered the lawmakers AND the software people because of this completely irreconcilabe legal situation. So then, the gov't attempted to state that when people paid $900 for a copy of Adobe Photoshop (or $90 for a utility, regardless)... that the gov't was actually assessing a tax on the physical owner's manual (book) that came with the software.
For intellectuals high and low, this was a lot of mumbo jumbo and was put to the cemetary after not much argument (i.e. what is the main thing being purchased, prime use, etc.)
In any case, it did not "add up" because the book that was included with the software did not cost $900 (and the gov't was taxing the cost of the book as though it cost $900).
Then, it got worse:
Many software companies had learned to include the manual on the actual CD and in the Help files, nullifying further the need for a book.
It just is not supposed to be both ways. Either you own the product (which is why you paid a tax), or you licensed the software and it's up to the company to handle their taxes appropriately for licensing and you do NOT own the product.
Cannot be both ways.
Since it appears to be both ways (when it cannot be?)... this only adds to the mess, confusion, and mixed signals.
2) I liked some of what Codmate wrote regarding the difference in intellectual property vs. physical property. Unfortunate that people do not understand the distinction, and how it applies.
3) Another erroneous argument that was put forth was the one that stated "a candy bar is less of a crime than that of stealing a $100,000 which is why the law makes a distinction between misdemeanors and felonies."
To whom? To some, the candy bar might be their last supper while the CEO's of many many companies would not be affected much at all by the loss of a seemingly great sum of money. The point should be very clear, which brings me to my last point:
4) It should be very clear.
