The purpose of this note is to endorse the salient point of much of that correspondence and which is copied as an attachment to this letter.
Prevention is always better than having to look for a cure.
The first stage in this process is one of education. Software Audit products are useful for the detection of unauthorised copying. The Code of Conduct of itself may not be sufficient. Your institution's position is further safeguarded by being able to demonstrate that a policy for dealing with Malefactors has been adopted and is being enforced. I believe it is fair to say that both parties have a high regard for the work of the other.