Legal aspects of internalization - selling software online


I'm making an engineering software. It's for a very specific market. The market size of the software, if I take only my country, is too small. But since I'm planning to launch it "cloud based", from the engineering point of view, is already pretty much international except for the language part. I could accept payments using pay-pal or any other method, and voilĂ ! it's all set. At least in theory.

But from the legal point of view, what considerations should I take from offering a software as a service to an international audience?

Legal International Cloud

asked Nov 4 '11 at 20:47
117 points
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2 Answers


You need (your lawyer needs) to think about whether and how your Terms of Service and End User License Agreement should be customized to take into account use of your software in many different countries.

For example, there are significant differences between countries as concerns which activities can make you subject to which of their laws; privacy protection requirements; intellectual property protection; limitations of liability and damages; restrictions on dispute resolution; and more.

In addition, one should consider whether to disclaim international laws, such as the United Nations Convention on Contracts for the International Sale of Goods.

Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.

answered Nov 5 '11 at 09:14
Dana Shultz
6,015 points


You are mostly bound by the laws of the country you operate in. As long as you pay taxes properly on your income, it usually doesn't matter where your customer is from.

If PayPal works in your country and also in the countries where your customers are, that's 90% of the work right there.

Money comes in. People get the product they bought and are mostly happy. Pay your taxes locally. You're pretty much set.

Of course, your mileage may vary - if you are doing business in the US from Cuba or Iran, ignore all of the previous advice.

answered Nov 5 '11 at 01:05
Alain Raynaud
10,927 points

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