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Deadlock means two or more processes are waiting for a lock without doing anything (inactive).

Livelock means processes are active but not able to progress due to interdependence. Its like two people trying to cross a one man bridge, both backing off together and then both trying to move at the same time and doing this indefinitely.

http://www.cs.sfu.ca/CourseCentral/300/oneill/Resources/Segment7.pdf
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