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DarrkPhoenix: Lending actually typically requires an additional licensing agreement with the rights holder, so doing so would actually probably just land you in more trouble if the matter came to court. However, it's more likely the law would simply regard such non-commercial lending as a transfer of ownership from you to your friend, then from your friend back to you (which is basically what it is, with a gentleman's agreement that your friend would give the game back after using it).
Trying to split hairs on the legality of the matter, however, is a pretty pointless exercise. If the matter comes to court, chances are you're fucked. But since it very likely isn't going to come before a court then why worry about it? If you don't think there's any ethical or moral problem with what you're doing, then what's the issue, regardless of what the law says? And if you do feel that there's some ethical problem, and that's what's prompting the legal hair-splitting, then just stop trying to find an excuse and stop doing what you see as wrong. Just take a common sense approach to the whole matter, and leave the mess of legal codes to the lawyers in the cases where the matter actually comes before a court.

Actually, it's just spawned by curiosity on the legality of it.
That's the kind of person I am. If I have no moral issue with doing something, I really don't care too much about the legality of it. (which is why I do things like make smoke bombs) Buuut, I like to KNOW the legality of it. :)
It's at this point that I'd like to point out that EULA's are indeed not law.
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Zolgar: Actually, it's just spawned by curiosity on the legality of it.
That's the kind of person I am. If I have no moral issue with doing something, I really don't care too much about the legality of it. (which is why I do things like make smoke bombs) Buuut, I like to KNOW the legality of it. :)

Heh, in that case I'll see if I can add a bit more to what's already been said. The tricky thing with these kinds of legal matters surrounding copyright law and contract law is that in addition to the law itself being fairly convoluted, to say nothing of specifics varying by location, many of the critical aspects are actually established through case law as opposed to what is simply written as law. And if that wasn't enough existing case law is not in agreement over some of the key issues, with most rulings coming only from lower courts and appeals courts, with only a few Circuit Court rulings (and no SCOTUS rulings). Additionally, as most cases of copyright infringement are a civil matter, it's not a simple matter of looking at what actions DA's are prosecuting. Rather, these cases only get brought to court when a private party decides to bring suit, and as you can bring suit for just about any reason this alone says nothing about the legality of the matter. Also, once a suit has been brought, unless it's basically a slam dunk, the outcome will depend on everything from what the law says, to how the judge interprets what the law says, to how good your lawyer is, to what evidence is available and admissible, to whether the jury (if one is involved) likes the way you look. And when the case is finally settled, you'll have an answer on whether one specific action in one specific case in one specific area is legal or not. So while there can be some very general speculation about how a court might rule if a case were brought, actually knowing without having case law established for a nearly identical case is not really possible.
First of all, as it's stated in our rules Web Site Terms and Conditions of Use and EULAs of games sold here - our customer can only install and use them legally on his own machines. It does not matter here how many copies of the said software the user owns.
On the side note EULA is a form of a contract. :)
If you want to dig in the legal stuff than please note that you don't own any software and are only granted the right to use it (yes, that's what you really pay for).
There has also been posted a question concerning buying multiple games on one GOG.com account (aka paying for the right to use it... er... multiple times). When you make a purchase on GOG.com you can have fun with a game on all of your machines. So there's no real need for you to pay us multiple times... unless your not an end-user. Due to our deals with the publishers we can only provide our service to end-users.
When you install our game you have to agree to our EULA so it's seen as something (you might have noticed that I'm not a lawyer) similar to signing a contract with GOG.com. And contracts are not to be violated. :) In any case according to the EULA you are our customer. Your friends that would like to play the game on a computer that is not yours are not our customers and thus cannot play the game legally (unless they'll create an account and purchase the game they want to play).
Anyway... What we have here is a nice and user friendly place of internet distribution. As we also have be publisher friendly so that they'll agree to our DRM-free policy this state of affairs is not easy to maintain. Just consider this the next time you'd like to ask a question concerning breaking our Terms of Service.
edit:
Unfortunately I forgot to answer OP's question. You can install a game on any of the computers you own. If your friends are going to bring their own machines to your LAN-party (and this is most likely) they'll have to create their own accounts on GOG.com and buy the right to use our games.
Post edited June 29, 2009 by Tirpitz
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Tirpitz: If your friends are going to bring their own machines to your LAN-party (and this is most likely) they'll have to create their own accounts on GOG.com and buy the right to use our games.

So, if my friends use my computers, we can, for instance, beat co-op Duke Nukem 3D: Atomic Edition at my LAN event?
NOTE: wouldn't need the DN:AE since I already own a copy on a floppy.
Post edited July 15, 2009 by MGN001
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Tirpitz: If your friends are going to bring their own machines to your LAN-party (and this is most likely) they'll have to create their own accounts on GOG.com and buy the right to use our games.
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MGN001: So, if my friends use my computers, we can, for instance, beat co-op Duke Nukem 3D: Atomic Edition at my LAN event?
NOTE: wouldn't need the DN:AE since I already own a copy on a floppy.

You're asking about a game purchased from GOG or somewhere else?
What if my friends gave me their computers for the night of the LAN party, and I returned them at the end of the night with my software taken off?
Then, technically I own all the computers I have any game installed on, right?
Yeah, that is pretty sketchy, at best.
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konoharaven: What if my friends gave me their computers for the night of the LAN party, and I returned them at the end of the night with my software taken off?
Then, technically I own all the computers I have any game installed on, right?
Yeah, that is pretty sketchy, at best.

Hmm... It seems that you'd make profit (getting their machines) because of actually letting them play your game. And in that case you wouldn't be a "end user" thus making the whole thing illegal as we can only provide our service to end users. ;)
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MGN001: So, if my friends use my computers, we can, for instance, beat co-op Duke Nukem 3D: Atomic Edition at my LAN event?
NOTE: wouldn't need the DN:AE since I already own a copy on a floppy.
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Tirpitz: You're asking about a game purchased from GOG or somewhere else?

Purchased on GOG.
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Tirpitz: You're asking about a game purchased from GOG or somewhere else?
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MGN001: Purchased on GOG.

If their really your machines than it's Ok.