DavecUK
I think they are right. The value of this machine is not so much in the physical bits; it is in the intellectual property embodied in the software.
The physical bits are likely only worth that much.
If a customer fails to declare the software (assuming sales tax / VAT on software applies), that is the customer's concern. I wouldn't chance it but someone else might. If no VAT applies to software so be it.
Remember John B, the primary founder, emerged from Silicon Valley where IP always has a high value and hardware is often looked at as a liability (inherently diminishing asset).
As they've sold roughly 15,000 machines without problems with revenue authorities, I believe the revenue authorities take the same view. Decent uses top IP law firms so they undoubtedly received clear advice that this policy is legal and sound.
