Much like normal law, there is Westlaw's official policy and its actual enforcement in practice. If Westlaw actually wanted to bust every student they could, though for some reason they don't.
I'd like to suggest that its really not in Westlaw's best interests to support such a policy. If firms and gov employers were not allowed to have students use their own Westlaw accounts, they would lose the chief benefit of having interns, free Westlaw research. Without candidates having requisite experience, there would be a less skilled labor pool and consequently less skilled attorneys who could not afford to pay for their very expensive services.
For all the shit this board gives shitty law schools for scamming law students, there is little talk of the Westlaw/Lexis practice of gouging law firms by exercising their duopoly power and enforcing heavy price discrimination. A big reason why firms cant hire people is their ridiculous overhead which is driven (among many other things) by the legal research costs. http://www.geeklawblog.com/2010/03/west ... -hour.html
, as you see Westlaw is doing just dandy charging 900-3400/hr for Westlaw next.
TLDR: I don't see why people feel bad for Westlaw, and I don't think its in their best interests to actually enforce their own policies.