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Yes, this works, but it also means that you're violating the license agreement that you agreed to. 1 person can install the license on many machines, but can only use the app on one machine at a time.

If we wrote the code the way you want it to work, a 10-person company could buy a 1 seat license and then give it to everyone, because we have no real way of telling 'oh, these two machines are owned by this person'.

We make the five seat family pack licenses available for less than the cost of a 2 seat license; that would be the supported way to go about what you're trying to do.