1.
Make sure your domain isn’t somebody else’s trademark. People often think that being the first to register a particular word (or combination of words) as a domain confers unlimited rights to use those words. Not true. If your domain happens to be another company’s trademark (or is confusingly similar to another company’s trademark), that company could force you to cease your use. For this reason, it’s important to “vet” your proposed domain name with a trademark attorney, early on.
2.
Use your trademark appropriately on your website. Once you’
ve cleared and protected your own trademark, make sure you depict it correctly on your website. This really matters! Using your trademark inappropriately (e.g., using it as a noun instead of an adjective, or using incorrect markings) could cause you to lose your trademark protection. If you maintain the site yourself, make sure you understand the usage rules. If you have staff or contractors maintaining the site, make sure they’re properly trained.
3.
Don’t commit copyright infringement. One of your biggest risks for web-related liability is failing to clear licenses for the content on your site. Think about the text, images, music, video, maps…pretty much everything on the site. If you or your employee did not create this material, you almost certainly need licenses. Do not underestimate the importance of obtaining them. Statutory damages for copyright infringement can reach as high as $150,000 per infringement.
4.
Understand what contractors own – and what you may not. If your employee created copyrightable material in the course of his/her employment, you own the copyright. The same is not true for material created by contractors, even though you specifically paid the contractor to create the material. Make sure you have properly drafted contracts with your contractors, before they create any copyrightable material for you.
5.
Don’t be held liable when others commit copyright infringement. Does your site have a chat room…a forum…a blog? Do you provide others with email accounts or
ecommerce opportunities? If your website permits third parties to post material (commonly referred to as “User Generated Content” or “
UGC”) and it turns out the
UGC is infringing, you’re just as liable for copyright infringement as the user who posted the material. Fortunately, there are steps you can take to protect yourself. The Digital Millennium Copyright Act (
DMCA) offers procedures that can provide “safe harbor” in these situations. Consult with your attorney to make sure you comply fully with the
DMCA’s requirements Follow the procedures properly, and you may be eligible for safe harbor. Fail to do so, and you’re a potential defendant.
6.
Make sure your Terms of Use Agreement is likely to be enforceable. How extensive your Terms of Use Agreement needs to be, depends on what you do with your website. If the site is purely informational, the
TOU can be brief. If you engage in
ecommerce or provide opportunities for
UGC, the
TOU should be substantially more detailed. Either way, though, the
TOU is a contract between you and the users of your website. And a contract does you no good if it’s not enforceable. Don’t make the mistake of copying a
TOU from somebody else’s website and using it as your own. (For one thing, that’s copyright infringement!) It’s not just the words that matter; it’s how the language of the
TOU correlates to what you actually do on the site and how you interact with your users. Work with your attorney to make sure your
TOU will work for you when you need it.
7.
Don’t fall into privacy traps.
Trap: If you collect personally identifying information from website users under the age of 13, you must adopt policies and procedures that comply with the federal Children’s Online Privacy Protection Act. Some states also have statutes that regulate online privacy.
Trap: You are bound by all representations you make in your privacy policies. Often, carelessly drafted policies make representations that are difficult, if not impossible, to uphold. One very common error is stating, “We will never share your information with anyone, ever.”
8.
Be afraid of online contests. Never sponsor an online contest without first consulting your attorney. And be prepared for the attorney to tell you things you don’t want to hear. Online contests create a minefield of potential liability. Doing it right is going to mean a substantial investment of time and resources.
This post is not legal advice. Consult your own attorney.Copyright 2009 Elizabeth T Russell