Your terminology is all wonky here…

Downloading is copying a file from the network onto the local device. Installation extracts files to the appropriate directories, makes config changes, etc… “Installed from a local source” doesnt make sense, as any file you would install you would first need to download or pull off of some other media.

having free copies of the content available on the internet decreases the desire for people to obtain paid copies of the data.

According to who?