1. Read PayPal's T.O.S..
2. Read Webster's on the difference between tangible, and intangible or digital downloads.
3. Post your new findings in this thread.
This issue has been discussed many times before.
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Should You Email Your Members?
Link1 | Link2 | Link3
Enough Said. 
"Would you rather live like a king for a year or like a prince forever?"
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