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I have Trinity (on a physical disc), and I've registered and updated it with Impulse. Is it possible/legal for me to have a LAN game with a friend who doesn't own the game, or does he have to buy a copy? I read in the manual I can play on 2 connected machines using the same serial, but would he need Impulse for updates? I'm a bit confused.
It is possible, the only time the game cares about your registration is for updates and online multiplayer. Legally its more of a gray zone, if they are both your computers its probably okay. Otherwise well its debatable but you can certainly do it.
For LAN you just need to have the same version, whatever it is. Doesn't have to me the most recent one.
So since I'm on 1.2, he has to be too? How will he get the update if he isn't registered?
You can download the game onto another computer with no issues (at least I have never found one). The biggest issue is Stardock may want to stop the pirates but they know not to punish the customer and any future customers like their friends. I believe the limit of downloads is like 1,000 times in an hour so you might want to be careful there. 
The only issue with registration is when getting online.
If I download the game onto another computer, can I update it too? Do I even need to?
If you download a game though impulse it should download the latest version.
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