Can we un-install non critical applications and add our own application in Ubuntu 14.01 and then redistribute and sell it to people over the web without any legal issues?
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Will you also be providing updates for the 'add our own applications' part? – Parto May 29 '14 at 20:59
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Yes, realtime if they have a web connection and the download will be updated too ... – user286617 May 29 '14 at 21:03
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Short answer: No.
"Ubuntu's trademark policy prohibits commercial redistribution of exact copies of Ubuntu, denying an important freedom."
http://www.gnu.org/distros/common-distros.html
There may also be proprietary software that you do not have the legal right to redistribute as well.

ever99
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we will be taking out all the fancy apps and leaving just the system critical apps in ... so it would not be exact copies ... Its a stripped down distro ... so would that be ok then? – user286617 May 29 '14 at 21:00
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You will have to remove all Ubuntu branding in order to avoid trademark violations. – ever99 May 29 '14 at 21:05
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Ok, we can do that ... it will be just a liveCD / USB for system recovery and wont be installed ... but so far we like ubuntu for that ... – user286617 May 29 '14 at 21:09
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so you would not like us to promote Ubuntu if the customer wants to replace their OS? – user286617 May 29 '14 at 21:11
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So as long as remove all references to Ubunto then there is no trademark policy issues, and we remove the other apps that you distibute with Ubuntu 14.01 LTS? – user286617 May 29 '14 at 21:16
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Well, I don't have connection with Ubuntu other than I use it myself. Whether or not they would seek charges against you would be up to them, but it's best to just avoid potential legal issues altogether. You just can't legally sell their trademarked material without their permission, I believe. – ever99 May 29 '14 at 21:20