Data

So how does this work, there are no atoms to represent Data, that it actually exists, its just light beams that are converted into 1's and 0's via your processor etc...
How can i get sued for something that doesn't exist

more importantly, when you buy software you are paying for a bunch of 1s and 0s.

That's the difference between information/entropy and matter. You're paying for information, quite a valid concept.