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The Grid environment is rapidly emerging as a collaborative environment for a wide range of applications. Applications that demand intense problem solving capabilities, extensive data sharing and processing, collaborative relationships among distributed participants employ grid computing. Grid environments provide efficient and scalable access to distributed computing resources among geographically distributed participants. In a grid environment virtual organizations are formulated and managed from a computing resource point of view. The grid provider allows for the dynamic discovery of computing resources, the immediate allocation and provision of the resources and the management and provision of secure access. In our work we examine the legal implications that arise in such environments. Although the security problem in grid environment is being addressed from the technological point of view, there is no work to identify the legal issues that are arising in collaborative environments.