India has emerged as one of the leading destinations for offshore outsourcing in the software industry and has attracted the attention of software industries of several countries including Germany. In order to sustain this outsourcing relationship, the legal frameworks of these countries play a very important role. In this article, the author conducts a comparative analysis of Indian and German laws that impact the software industry, mainly dealing with three fields: first, Copyright Law impacting the protection of intellectual rights over software; second, Contract Law specifically dealing with software contracts and nature of such transactions and, finally, the remedies available in both the countries under their civil, criminal and administrative law to ensure protection of software.