EULA Agreements: Do They Fit All Latin American Countries?


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Gastón Mirkin, from Paolantonio & Legón Abogados, explains the differences between jurisdictions throughout Latin American countries and how software users, developers and localizers can protect themselves when working in the region.

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EULA Agreements: Do They Fit All Latin American Countries?

  1. 1. EULA Agreements: Do They Fit All Latin American Countries? - Material Jurisdiction Issues Gastón Ariel Mirkin Paolantonio & Legón Abogados
  2. 2. What are EULA? <ul><li>EULA are “End Users License Agreements” </li></ul><ul><ul><li>Licensor grants to licensee a non-transferable and non-exclusive limited license to install software </li></ul></ul><ul><ul><li>Acceptance of EULA by clicking on Internet </li></ul></ul><ul><ul><li>Performance at licensor’s main office country </li></ul></ul><ul><ul><li>Law and courts at licensor’s main office country </li></ul></ul>
  3. 3. Usual clauses in EULA <ul><li>Definitions </li></ul><ul><li>Purpose: license grants and restrictions </li></ul><ul><li>Ownership of license and trademarks </li></ul><ul><li>Limitation of liability </li></ul><ul><li>Confidentiality </li></ul><ul><li>Termination. Clauses that survive </li></ul><ul><li>Applicable law. Jurisdiction. </li></ul>
  4. 4. Validity of EULA Execution <ul><li>Agreements are formal and not formal </li></ul><ul><ul><li>Formal: deeds, corporations, PoA </li></ul></ul><ul><ul><li>EULA is a not formal agreement </li></ul></ul><ul><ul><li>It is valid the execution by clicking on Internet </li></ul></ul><ul><ul><li>Signature apostille (Hague Convention 1961) </li></ul></ul><ul><ul><li>Consumer law. Invalidation of abusive clauses </li></ul></ul>Legal Disclaimer : consult each LATAM local legislation
  5. 5. Foreign Law and Courts <ul><li>Parties can chose the law and courts </li></ul><ul><ul><li>Exception: family matters </li></ul></ul><ul><ul><li>However, domicile of defendant and place of execution applies to jurisdiction matters </li></ul></ul><ul><ul><li>Foreign law must be applied by local courts </li></ul></ul><ul><ul><li>Issues related to notice of lawsuit filing </li></ul></ul><ul><ul><li>Surety bond requirements (not labor - Mercosur) </li></ul></ul><ul><ul><li>Execution of foreign judgments </li></ul></ul>
  6. 6. Foreign Law and Courts (2) <ul><ul><li>Used in international agreements (i.e., loan, bonds license, distribution, etc.) </li></ul></ul><ul><ul><li>Recognition and enforcement of foreign judgments (art. 517 Code Proceedings) </li></ul></ul><ul><ul><ul><li>Judgment by competent foreign court </li></ul></ul></ul><ul><ul><ul><li>Defendant was served with summons and had opportunity to defend </li></ul></ul></ul><ul><ul><ul><li>Authenticity of judgments according local laws </li></ul></ul></ul><ul><ul><ul><li>Judgment does not violate local public policy </li></ul></ul></ul><ul><ul><ul><li>Judgment is not contrary to a prior or simultaneous judgment in Argentina </li></ul></ul></ul>
  7. 7. Bankruptcy / Reorganization Enforcement of foreign decisions are subject to bankruptcy and reorganization proceedings of defendant <ul><li>Real cases of reorganization proceedings </li></ul><ul><li>Fargo : acceleration of principal due </li></ul><ul><li>Multicanal : method to calculate the majority in bondholders meeting </li></ul>
  8. 8. Arbitration proceedings Arbitration is the process of bringing a business dispute before a disinterested third party for resolution. The third party, an arbitrator, hears the evidence brought by both sides and makes a decision. The decision is binding on the parties.
  9. 9. Arbitration proceedings (2) <ul><ul><li>Advantages: </li></ul></ul><ul><ul><ul><li>Confidentiality </li></ul></ul></ul><ul><ul><ul><li>Speed and economy </li></ul></ul></ul><ul><ul><ul><li>Skills of arbitrators </li></ul></ul></ul><ul><ul><ul><li>Specialized competence of arbitrators </li></ul></ul></ul><ul><ul><ul><li>Parties can choose place of arbitration, language, procedures, nationality of arbitrators </li></ul></ul></ul><ul><ul><ul><li>International recognition of arbitral awards </li></ul></ul></ul><ul><ul><ul><li>Final, binding decisions </li></ul></ul></ul><ul><ul><ul><li>Possibility of revision by courts </li></ul></ul></ul>
  10. 10. Arbitration proceedings (3) Examples of arbitration forums International Chamber of Commerce - International Court of Arbitration (ICC) American Arbitration Association (AAA) World Intellectual Property Organization Arbitration and Mediation Center (WIPO) Standard ICC arbitration clause “ All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules ”.
  11. 11. Local Idiosyncrasy Examples of Idiosyncrasy Issues Best efforts clauses in underwriting agreements Due diligence defense in bond and shares issuances Differences between common law and civil law Common Law : USA, UK, Australia, Hong Kong, Ireland Civil Law : Latin-American, Europe Civil Law : legal system inspired by Roman law. Legislation primary source of law (codes). Common Law : case law is a major source of law, while statutes are often seen as supplemental to judicial opinions (interpreted narrowly)
  12. 12. THANK YOU! Gastón Ariel Mirkin [email_address]