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How are group buys legal? Can somebody explain to me how a group buy is different than piracy?

This isnt a moral question, I just dont understand the distinction here.

Scenario 1: A group of 5 people all put $100 in the hat for a $500 course/software. One of the 5 guys takes everyones $100, buys the product, and then shares it with all 5 people. This is a group buy. It is apparently legal, but generally against TOS.

Scenario 2: One guy puts forth his own $500 to buy the same course/software. He uploads it to a warez site and shares it with a bunch of people. This is piracy and it is illegal.

Its the exact same thing. One guy is legally buying a single unit of product and sharing it with multiple people. What is it that allows group buys to legally exist?

submitted by /u/CoyotePuncher
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