Well, i think "Explain the term copyright in relation to a software developer's legal applications of it" means that the copyright protects the software developer from misuse of what they develop. So the copyright is the document that says that if the person decides to use the developer's software, they agree that [for example] the developer is not legally responsible for what the user uses the software for. (As a hacker, i see this in just about every script, tutorials and application i've ever used).
Or i could be thinking about this the wrong way. Legally, it means basically that a user or any other software developer, is not allowed to reverse engineer the software and use/modify it's code in order to benefit off the developer's work.
As for the ethical application, i'm pretty sure that's what i started talking about, how users should not use the software for malicious purposes, and are responsible for their own actions involving the software, and the developer is not responsible for illegal acts committed with the software he/she wrote.
I think this is somewhere along the right track, but basically explain what the copyright is in each situation.
If i am totally off track, i am sorry. It's nearly 1am, and i haven't had a decent night's sleep in a week.
- Alex.