If it's truly a perpetual, unlimited-seat license, "No" is the correct
answer, and the vendor gets sleaze points for trying an end-run. If there's
a weasel clause, you may be SOL.

Will be very interested to hear how this plays out.

P.S. Would not be the first time a vendor (software or otherwise) has tried
such a ploy, of course, nor will it be the last. I remember during the OCO
wars at least one vendor had to provide source forever to Princeton
University because they had written it into the contract. The techies at
that vendor were not happy about it, not because they believed in OCO but
because they had to cut a special package for Princeton every release.

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