EULA says you can make ONE backup of your media. It would only be piracy if you used the CD or DVDs to install the same software license on TWO machines at the same time. Now, if he takes the DVD, downloads the CD version, and uses the CDs to install the system, then shelves the DVD, that's legal. because it means it's a backup. It just means on the EULA it must be one machine per bought system. It doesn't make a difference if he downloads it, as long as he owns the software to begin with, and as long as he paid for the software for each machine he installs it on.
Learn your laws man.