Legal Feasibility Assessment Template – Free Word Download
Introduction to the Legal Feasibility Assessment
In the complex machinery of modern project management, the Legal Feasibility Assessment is the brake pedal. While the Technical Assessment asks “Can we build it?” and the Financial Assessment asks “Should we buy it?”, the Legal Feasibility Assessment asks a far more serious question: “Are we allowed to do this?”
Enjoy this Legal Feasibility Assessment Template – Free Word Download
Ignoring legal feasibility is one of the most dangerous mistakes an organization can make. A project might be technically brilliant and highly profitable, but if it violates a data privacy law, infringes on a competitor’s patent, or breaches an existing exclusivity contract, the consequences can be catastrophic. We are not just talking about project failure; we are talking about massive regulatory fines, reputation destruction, and even criminal liability for company directors.
This template is designed to guide Project Managers, Business Analysts, and In-House Counsel through a systematic review of the legal landscape surrounding a proposed initiative. It is important to note that this document does not constitute legal advice. Instead, it serves as a structured framework to gather the necessary facts so that qualified legal professionals can make an informed decision. It acts as the bridge between the operational team (who wants to move fast) and the legal team (who needs to ensure safety).
The assessment covers critical areas such as Jurisdiction, Intellectual Property (IP) Rights, Data Privacy (GDPR/CCPA), Contractual Obligations, and Labor Law. By completing this template early in the Concept Phase, you ensure that your project is built on a solid legal foundation rather than quicksand.
Part 1: Project Identity and Jurisdiction
Laws are not universal. They are bound by geography. A feature that is legal in the United States might be illegal in Germany. Therefore, the first step is to define where the project exists.
Project Context
Instructions:
Provide the basic metadata for the initiative.
- Project Name: [Insert Name]
- Project Sponsor: [Executive Name]
- Legal Lead: [Name of the Attorney reviewing this]
- Date of Assessment: [DD-MM-YYYY]
Jurisdictional Scope
Instructions:
List every country, state, or province where the project will operate, sell, or store data.
Table: Operational Jurisdictions
| Activity | Location(s) | Key Legal Framework |
| Headquarters | California, USA | US Federal Law / California State Law (CCPA) |
| Data Hosting | Dublin, Ireland | European Union Law (GDPR) |
| Customer Base | Global (Internet) | International Trade Laws / OFAC Sanctions |
| Manufacturing | Vietnam | Local Labor and Environmental Laws |
Why this matters:
If you are hosting data in Ireland, you are subject to the GDPR, regardless of where your headquarters are. Identifying the jurisdiction triggers the specific checklist of laws you must obey.
Part 2: Intellectual Property (IP) Freedom to Operate
One of the most common ways projects get shut down is through patent or copyright infringement. You must verify that you have the “Freedom to Operate.”
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Intellectual Property
Patent Infringement Analysis
Instructions:
Does the proposed product or process step on someone else’s toes?
- Proposed Technology: “We are building a ‘One-Click’ purchasing mechanism.”
- Search Results: “A patent search reveals that ‘One-Click’ purchasing is a heavily litigated area. Patent #XYZ owned by Competitor A looks similar.”
- Legal Opinion: “High Risk. We must modify our design to require ‘Two Clicks’ to avoid infringement, or negotiate a licensing fee.”
Trademark and Branding
Instructions:
Is the project name available?
- Proposed Name: “Project Apollo.”
- Clearance Check: “The name ‘Apollo’ is trademarked in our industry by three different companies.”
- Action: “We cannot use this name commercially. Marketing must rebrand before launch.”
Open Source Software (OSS) Licensing
Instructions:
If this is a software project, are you using Open Source libraries?
Table: Third-Party License Check
| Library Name | License Type | Restriction | Status |
| React.js | MIT | Permissive (Safe for commercial use). | Green |
| Library X | GPL v3 | Viral: Requires us to make our own code open source. | RED (Blocker) |
| Library Y | Apache 2.0 | Permissive with attribution. | Green |
Risk Note:
Using a “Viral” license (like GPL) in a proprietary commercial product can legally force you to release your proprietary source code to the public. This is a massive legal feasibility failure.
Part 3: Data Privacy and Protection
In the modern era, data privacy is the heavyweight champion of legal risk. Fines can reach 4% of global turnover.
Data Classification
Instructions:
What kind of data will the project handle?
- Public Data: Marketing brochures (Low Risk).
- Internal Data: Sales forecasts (Medium Risk).
- PII (Personally Identifiable Information): Names, emails, addresses (High Risk).
- Sensitive PII: Health records, biometrics, political views (Critical Risk).
Regulatory Compliance Check
Instructions:
Assess compliance against major privacy laws.
Questionnaire:
- GDPR (Europe): Does the system allow users to delete their data (“Right to be Forgotten”)?
- Assessment: “Currently, the database performs a ‘Soft Delete’ (hiding the record). To be feasible, we must implement a ‘Hard Delete’ function.”
- CCPA (California): Do we have a “Do Not Sell My Data” button on the footer?
- Assessment: “Yes, the frontend design includes this.”
- Data Residency: Does the law require data to stay in the country?
- Assessment: “Russian and Chinese laws often require local data storage. We must provision servers in those regions rather than serving everything from the US.”
Part 4: Contractual Feasibility
Sometimes the law allows it, but your own contracts forbid it. You must check your existing agreements.
Exclusivity and Non-Compete Checks
Instructions:
Review existing vendor and partner contracts.
- Scenario: “We want to launch a new soda brand.”
- Constraint: “Our distribution contract with Partner X grants them exclusive rights to distribute ‘Beverages.’ If we sell this directly to consumers online, we might be in breach of contract.”
- Feasibility: “Conditional. We must renegotiate the distribution agreement or limit the online sales to regions where Partner X does not operate.”
Vendor Dependencies
Instructions:
Are we legally allowed to use our vendors for this new purpose?
- Scenario: “We want to use our existing CRM license for the new subsidiary.”
- Constraint: “Our Enterprise License Agreement (ELA) limits usage to ‘North American Employees Only.’ The new subsidiary is in Brazil.”
- Feasibility: “Not Feasible under current contract. We must purchase ‘Global’ licenses (Additional Cost).”
Part 5: Employment and Labor Law
Projects that change how people work often trip over labor laws.
Employee vs. Contractor Classification
Instructions:
Are you hiring freelancers to build this?
- Risk: “If we treat contractors like employees (set their hours, provide equipment), the government may reclassify them as employees.”
- Impact: “We would owe back-taxes, benefits, and insurance. This creates a significant financial liability.”
- Mitigation: “Legal Feasibility requires strictly defining the Statement of Work (SOW) to focus on deliverables, not hours.”
Union and Collective Bargaining
Instructions:
Does the project automate jobs?
- Scenario: “The project installs robots that replace 50 warehouse workers.”
- Legal Hurdle: “The Collective Bargaining Agreement (CBA) requires 90 days’ notice and mandatory severance consultation before any technology-driven layoffs.”
- Feasibility: “The project schedule is Not Feasible unless we add a 3-month buffer for Union negotiation.”
Part 6: Industry-Specific Regulations
Every industry has its own rulebook. This section captures those specific constraints.
Instructions:
Select the category that applies to your project.
Option A: Healthcare (HIPAA / FDA)
- Constraint: “The software acts as a medical device (Software as a Medical Device – SaMD).”
- Requirement: “Must undergo FDA 510(k) clearance before launch.”
- Feasibility: “Timeline must include 6-9 months for regulatory review.”
Option B: Finance (SEC / SOX / PCI)
- Constraint: “The system processes credit card transactions.”
- Requirement: “Must be PCI-DSS Level 1 compliant.”
- Feasibility: “Technically feasible, but requires annual external audits.”
Option C: Construction (Zoning / Environmental)
- Constraint: “Building a new facility near a wetland.”
- Requirement: “Environmental Impact Statement (EIS) required by the EPA.”
- Feasibility: “High risk of rejection if endangered species are found.”
Part 7: Liability and Consumer Protection
If the product breaks and hurts someone, are we protected?
Terms of Service (ToS) & Disclaimers
Instructions:
Do we have the legal text ready?
- Gap Analysis: “The current Terms of Service covers ‘Consulting,’ but this new project sells ‘Software.’ The current ToS is insufficient.”
- Action: “Legal Counsel must draft a new End User License Agreement (EULA) that limits our liability for software bugs.”
Advertising Standards
Instructions:
Are the marketing claims legal?
- Claim: “Our supplement ‘Cures the Common Cold’.”
- Legal Check: “This is a medical claim. Without clinical trials, this violates FTC (Federal Trade Commission) rules against false advertising.”
- Feasibility: “The marketing campaign is Not Feasible as written. Claims must be softened to ‘Supports Immune Health’.”
Part 8: Risk Assessment Matrix (Legal)
Summarize the findings into a risk view.
Table: Legal Risk Register
| Legal Domain | Risk Description | Severity | Likelihood | Mitigation Strategy |
| Privacy | Non-compliance with GDPR ‘Right to be Forgotten’. | Critical | High | Dev team must build ‘Hard Delete’ feature. |
| IP | Potential trademark conflict with ‘Apollo’. | Medium | High | Rebrand project to ‘Artemis’. |
| Contract | Breach of exclusivity with Distributor X. | High | Medium | Open renegotiation talks immediately. |
| Labor | Misclassification of Gig Workers. | High | Low | Review all contractor agreements with HR. |
Part 9: The Legal Verdict
The Lawyer (or Project Manager acting on legal advice) must render a decision.
Conclusion
Instructions:
Choose one of the following statuses.
- Legally Feasible: No material blockers found. Proceed.
- Conditionally Feasible: Feasible only if specific changes are made (e.g., changing the name, adding a disclaimer).
- Not Feasible (Illegal/High Risk): The project violates the law or carries unacceptable liability. Stop.
Narrative Statement
Example:
“The assessment concludes that the project is Conditionally Feasible.
- Condition 1: The marketing team must abandon the name ‘Apollo’ due to trademark conflict.
- Condition 2: The software team must remove the ‘GPL v3’ open-source library and replace it with an MIT-licensed alternative to protect our proprietary code.
- Condition 3: We must obtain specific insurance coverage for Cyber Liability before go-live.Provided these three conditions are met, there are no statutory blockers to proceeding.”
Part 10: Step-by-Step Guide for Conducting the Assessment
Step 1: Define the “What” and “Where”
You cannot check the law if you don’t know the jurisdiction. Explicitly list the countries involved.
Step 2: The “Red Flag” Workshop
Sit down with the Legal team. Don’t ask them to “approve the project.” Ask them: “What are the top 3 regulations that scare you about this?”
Step 3: The IP Sweep
Ask Marketing to run a trademark search. Ask Engineering to list all open-source libraries. Do this before you build, not after.
Step 4: The Privacy Impact Assessment (PIA)
If you touch user data, you likely need a formal PIA. This is a specific document required by GDPR. If needed, trigger that as a sub-project.
Step 5: Review Contracts
Read your own company’s existing contracts. It is embarrassing to be sued by your own partner because you didn’t read the exclusivity clause.
Step 6: Final Sign-off
Get the General Counsel or a designated Legal representative to sign this document. This protects the Project Manager. If you get sued later, you can show that you followed due diligence.
Part 11: Glossary of Legal Terms
- Jurisdiction: The official power to make legal decisions and judgments; also the territory over which this power extends.
- Indemnification: A clause in a contract where one party agrees to pay for the potential losses or damages of the other party.
- Force Majeure: Unforeseeable circumstances (like war or hurricane) that prevent someone from fulfilling a contract.
- EULA (End User License Agreement): The contract between the software creator and the user.
- Infringement: The action of breaking the terms of a law or agreement; violation (commonly used for Patent/Copyright).
- Liability: Being responsible for something, especially by law.
Conclusion
The Legal Feasibility Assessment is your insurance policy. It requires asking difficult questions and often results in hearing “No” or “Not like that.” However, hearing “No” in the planning phase costs nothing. Hearing “No” from a judge in a courtroom costs millions.
By completing this template, you demonstrate a high level of professional maturity. You show that you understand that a project does not exist in a vacuum; it exists within a framework of laws and rights. This document empowers the organization to take calculated risks rather than blind ones.
Final Checklist for this Template:
- Have you identified all operational jurisdictions?
- Did you check for Patent/Trademark conflicts?
- Is the Data Privacy plan compliant with GDPR/CCPA?
- Have you reviewed existing Exclusivity Contracts?
- Is the Open Source Software licensing verified?
- Has a qualified Legal professional reviewed the findings?
Meta Description:
A template for Legal Feasibility Assessment. Learn to evaluate projects for regulatory compliance, IP infringement, data privacy risks, and contractual obligations.