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take youtube for example, it converts the video you upload to flash video.

would youtube be considered software or service?

i think it would be service. what sort of laws protect service providers ?

+1  A: 

A software based system is used to power services (e.g. Youtube).


As far as the legal side of the question goes, you are most definitely not hitting the right crowd here... of course, there might be exceptions ;-)

jldupont