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Sections 16.11 and 16.12 assign sole responsibility to Customer for export control and trade sanctions compliance, prohibit use in U.S. embargoed countries or by restricted parties, and restrict Service access to supported countries and territories, with violations subject to Service suspension.
This analysis describes what OpenAI's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
These provisions assign compliance responsibility for trade controls entirely to Customer and restrict geographic access to Services, creating operational obligations for customers with international operations or End Users in or near sanctioned jurisdictions.
The agreement makes Customer solely responsible for compliance with U.S. and applicable trade laws, sanctions, and export controls, and prohibits Service access outside of OpenAI's supported countries and territories. Violations of geographic restrictions may result in Service suspension.
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"Customer is solely responsible for ensuring that its use of the Services complies with applicable trade laws, including sanctions and export control laws. Customer's Input may not include material or information that requires a government license for release or export. Customer may not use the Services in or for the benefit of, or export or re-export the Services to, any U.S. embargoed countries or to anyone on a Restricted Party List. ... Customer and End Users may not access or offer access to the Services outside of the Supported Countries and Territories. A violation of this Section 16.12 may result in Services suspension under Section 8.Excerpt from OpenAI's Business Terms
1. REGULATORY LANDSCAPE: These provisions engage U.S. export control law administered by the Bureau of Industry and Security under the Export Administration Regulations, and U.S. sanctions programs administered by OFAC. Customers with international operations or End Users in or near sanctioned jurisdictions must conduct export control and sanctions screening consistent with these frameworks. EU and UK export control and sanctions regimes may impose additional independent obligations on EEA and UK customers. 2. GOVERNANCE EXPOSURE: High for customers with international operations, End Users in restricted regions, or those operating in dual-use technology sectors. The sole responsibility placement on Customer means OpenAI does not accept liability for Customer's failure to conduct required know-your-customer or sanctions screening of End Users. 3. JURISDICTION FLAGS: The agreement's know-your-customer requirement for End Users is operationally significant for customers deploying Customer Applications to third-party end users, particularly in sectors subject to heightened export control scrutiny such as defense, aerospace, biotechnology, and semiconductor industries. EU customers face additional obligations under EU dual-use regulations. 4. CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should assess whether existing export control compliance programs extend to AI API usage and End User screening. The geographic restriction to Supported Countries and Territories requires Customers to maintain an accurate understanding of which countries are supported and to implement access controls accordingly. 5. COMPLIANCE CONSIDERATIONS: Compliance teams should implement know-your-customer procedures for End Users, particularly for Customer Applications deployed to third parties. Geographic access controls should be technically enforced to restrict access to supported territories. Export control counsel should review Input content policies to ensure no export-controlled technical data is submitted through OpenAI APIs.
These provisions assign compliance responsibility for trade controls entirely to Customer and restrict geographic access to Services, creating operational obligations for customers with international operations or End Users in or near sanctioned jurisdictions.
The agreement makes Customer solely responsible for compliance with U.S. and applicable trade laws, sanctions, and export controls, and prohibits Service access outside of OpenAI's supported countries and territories. Violations of geographic restrictions may result in Service suspension.
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