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Looking For a Good International EULA

By Ed Foster, Section EULA Reviews
Posted on Tue Apr 18, 2006 at 12:08:47 AM PDT

If a software company is doing business internationally, does that mean it has to have one of those long, convoluted license agreements in order to protect itself in all the legal circumstances that it may encounter? I don't know the answer, but for reasons that are not entirely clear to me, it seems to be a question that's coming up more and more.


I've recently heard from several overseas readers who were eliciting my advise on how their companies could go about creating a EULA that would be as fair and simple as possible. "My company is about to globally release our first product, and I need an easy-to-read EULA for it," a reader with a European-based company wrote me recently. "We really want to avoid having one that's cumbersome and difficult to read. As we want to make sure our users understand their rights and limitation in using the software, it serves everyone that the terms be readable without need of legal counseling."

Naturally, I pointed to our FEULA, since it has been designed with input from both the customer and the software publisher side. But the European reader was concerned that the FEULA might be a little too customer-friendly for his company's needs. "This does not mean we plan to be unfair to our customers," he wrote. "But we are focusing on the corporate market, and we can't afford to leave any 'handles' for these companies to misinterpret to their benefit. Or, worse yet, sue us because we didn't specifically state that the product is sold as is, we take no responsibility, etc."

A reader on a similar quest for a company based in the Far East expressed similar concerns about whether they could afford to meet customers halfway with their EULA terms. "We will be selling this product to consumers in many different regions with many different laws," the reader wrote. "Would we face increased liability if we do not include the standard disclaimers? If so, our investors will demand we put all of these provisions in our EULA."

Now, let me just say I don't believe the FEULA is all that customer-friendly -- I've had some consumer-side folks tell me they think it leans to much to the publisher's side. But it is disturbing that these two readers, both of whom seemed quite sincere in their desire to at least keep their EULAs simple and readable, were having so much trouble figuring out how to do so. Are their fears justified? Do they really have to choose between protecting their companies or being fair to their customers?

Well, I don't know. But what I suggested to both is that they study the EULAs that readers have posted in the "EULAs with Good Terms" section in the EULA Library. After all, Grisoft is a European company itself, and Adobe does business everywhere, and presumably they know how to protect themselves. And I've just added another EULA to that list from a small Australian software company called Picnam, which we will discuss in more detail next time.

< Expedia Exacerbates Excruciating Experience | Coming to Terms With Simplicity >


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Looking For a Good International EULA | 234 comments (234 topical) | Post A Comment
Strange[ Reply to This ] (none / 0) (#1)
by Jarulf on Tue Apr 18, 2006 at 04:43:40 AM PDT

So they want an "easy-to-read EULA for it" because they want to go global. Does that mean they had a hard-to-read and complex EULA domestically?

Regarding the risk of different countries having laws about liability, the problem is not "how to word the EULA to avoid the law", the problem is, that you have to stick up to the law. If there is laws saying you are liable, then you are liable no matter what you write in your EULA, you can usually not contract away laws in such ways.

If it is complet bussiness relation they wnt to have, selling as a bussiness only to various bussiness in other countries, then, just as in every other area of bussiness in the world, you have to adapt to the market, laws and customs and it is a good idea to employ lawers from the specific country to help out, just as you would seting up any other business in far off countries you have no clue about.

[ Reply to This ]



I think you missed the point...[ Parent | Reply to This ] (none / 0) (#2)
by Anonymous User on Tue Apr 18, 2006 at 07:17:31 AM PDT

Say that I want to release a new software product via the Internet. Realistically, anyone on the planet could purchase and download my product. I don't think it is reasonable that I should have to hire an attorney in every country on the planet to protect my rights to sell my product.

[ Parent | Reply to This ]


re: I think you missed the point...[ Parent | Reply to This ] (none / 0) (#3)
by Anonymous User on Tue Apr 18, 2006 at 10:05:47 AM PDT

I'm sure the attorneys think it's reasonable...

...and who makes most of the laws?



[ Parent | Reply to This ]


distance sales[ Parent | Reply to This ] (none / 0) (#4)
by Jarulf on Tue Apr 18, 2006 at 12:49:03 PM PDT

Typically when you sell something over the net like that, your own country would be the one dictating the conditions and such. Since you don't have precense in the countries you deal with either, there is reall ynot much to worry about either. This is one of the problems for someone shoping "on the net" from other countries, you have very litle safety from your own consumer protection laws backing you up.

But again, look at it as if you wanted to sell any other product over the net, (shiping might be simpler by that is about it). Do you need help with layers in such cases? If so you probably need it for your software too. Do you not need such help? Then you probably doesn't need it for the software either. Software is really not something magical, special and strange.

[ Parent | Reply to This ]



re: distance sales[ Parent | Reply to This ] (none / 0) (#6)
by Anonymous User on Tue Apr 18, 2006 at 12:55:36 PM PDT

Are you sure about that? What about the issue with Apple selling iPods in France, where France wants to force Apple to make their iPod less proprietary? Isn't that French law being forced on a US company?

IANAL, so I may be missing something, or perhaps Apple has a physical presence in France that makes them subject to French law.

[ Parent | Reply to This ]



You got it right[ Parent | Reply to This ] (none / 0) (#10)
by Anonymous User on Wed Apr 19, 2006 at 06:00:27 AM PDT

Apple has a presence in France so that makes them need to abide by those rules. Additionally they are selling a physical product that has to get in to France. If France doesn't want Apple to do business there, they can stop all imports from Apple. Software (downloaded, or shipped in an box straight to a customer) is different. If it was going to be sold in whatever the French equivalent of a "Best Buy" is, then whoever was selling it would want to play by all the French rules as well.

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Clarification[ Parent | Reply to This ] (none / 0) (#12)
by Jarulf on Fri Apr 21, 2006 at 12:23:37 AM PDT

As allready pointed out somewhat, what I refered to was overseas sales, that is, I, in one country, buy directly from a shop/company in some other country. Your example is of Apple seting up the bussiness/shop in France directly (as oposed to selling to french people from another country.

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