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I'm installing Mountain Lion on one of my Macs and I'd like to test it (under virtualization) on another. This other (for a variety of reasons) will continue to run Lion.

Can I use VMware Fusion to virtualize Mountain Lion (client) under Lion (client) legally? Does the virtualization section of the license allow this?

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As far as the license says, no.

You have the right to:

(iii) to install, use and run up to two (2) additional copies or instances
of the Apple Software within virtual operating system environments on each 
Mac Computer you own or control that is already running the Apple Software, 
for purposes of: (a) software development; (b) testing during software 
development; (c) using OS X Server; or (d) personal, non-commercial use.

So, as far as the license goes, you must already be running Mountain Lion in order to virtualize it.

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