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We are implementing a new business and looking forward for a free file sharing server and thought giving samba server through Ubuntu for files and folder restriction/access permissions. should be able to serve files for upto 70 user simultaneously. Is it legal to use free Ubuntu server and samba server for this purpose ?

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Local, Regional, and Ethical laws aside, you can use Ubuntu server for whatever you need. Ubuntu is free and community driven, so people use it for many different things. There is no EULA with Ubuntu (like there is with Windows and Mac) so you have total control, but you also must take all the responsibility for your actions.

IE, if your local or regional laws prohibit file sharing (you'd have to read up on this yourself or find an answer on another site), then you, not Ubuntu, would take all the responsibility for your actions.

And on a side note, what you are doing sounds reasonable / ethical, as long as you own the shared data and the shared data is distributed. Otherwise, all I and anybody else at Ubuntu can do is shake their finger at you.

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