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This should be fairly simple. I want to use Sharepoint Workspaces to share documents. Most clients will be using a secured network to connect. I'm not worried about them. I am worried about other clients (contractors, vendors, etc) that are not on a secured network. I would like to lump everyone who isn't using a secured network into a group, and somehow prevent them from downloading the documents onto their computers, in case something happens.

Is there any way to prevent certain users from having a local copy of a file on their machine, yet still edit the documents in-browser only?

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You could configure Information Rights Management and then enable it on the document libraries you wish to protect. SharePoint Workspace will honor those IRM settings.

Securing SharePoint documents that you take offline

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