Guest Analyst: Anthony E. Perkins is an Attorney and a Principal with TechVentures Group, LLC., a business advisory group focused on technology-oriented businesses and ventures seeking expert assistance and information on starting, growing, selling, merging or financing their companies.
Can They Do That?
"I sent them an e-mail and the next time I looked at their website they had posted the mail, with my name and address for everyone to see. Can't I sue them for violating my privacy?" asked one shopper. "Somebody told me that my competitor has already taken the name of my store as an Internet address. Can they do that?" wondered the owner of a small chain of shoe stores. "I heard that someone has a patent on the whole idea of a shopping cart. How can they get a patent for that?, What can I do if they sue me?" complained the CEO of an on-line cosmetics site.
What exactly are the rules for business on the Internet? How does a new business make sure that it is following those rules, and protecting itself against legal challenges from other companies and irate consumers? Legal advice about the most important legal steps to be taken when entering into an Internet-based business venture can be essential for the venture's long-term success. This article will help you understand the kinds of information you need to provide to your attorney to get the best possible advice on setting up you new Internet business.
Where to Start
Although you may be already thinking about the complex contractual issues of buying and selling on-line, or about protecting your business from being hailed into foreign courts, your attorney will probably want to start with the key intellectual property components forming the core of your electronic business. So the first item of discussion will undoubtedly be your business plan.
Electronic commerce is like any business undertaking. As with any business, there needs to be a well thought out business plan that includes the details on what the business entails, who will be involved in the business, who will carry out the various business steps and how the business will achieve its financial goals. Unfortunately, the current gold rush mentality surrounding Internet stocks and IPO's has created a feeling among many in the business community that they need to jump into the E-commerce arena or risk losing a significant competitive advantage. Your attorney will be aware that many of the Internet-based business ventures rolled out in the last few years have spent large sums on start-up and still have not made any profits.
So don't be surprised or impatient if, before spending a significant amount of her time and your money your attorney's initial focus is on whether you have completed a detailed business plan with solid financial projections. She has already seen far to may people who don't recognize that a poorly planned venture cannot be a success in cyberspace any more than it can be in any other venue. Once she has determined that you have defined a financially feasible and technologically appropriate Internet based business, your attorney will engage in some or all of following key lines of inquiry.
Trademarks and Domain Names
Business commentators and Internet consultants alike make it clear that "branding" and key trademarks and trade names are critically important to most successful Internet businesses. AOL, Amazon.com, E-bay, E*Trade and others are Internet brand names known to a significant portion of today's business and consumer population. As a result, trademarks and domain names are often one of the two or three most important business considerations for an E-commerce business plan. This area also presents some of the most significant legal pitfalls for companies that do not undertake the proper investigation and preservation of proposed trademarks and domain names.
Although you may have been able to register a catchy Internet domain name, it may well be that a registered trademark in the same business category will trump that domain name and likely prohibit its use altogether. In one case, Brookfield Communications had already registered the trademark "Movie Buff" when West Coast Entertainment Corp. tried to use it as a domain name. Although West Coast was able to secure the domain name, a court found that because of the similarity of the businesses at issue consumers would likely be confused as to the source of the information or products provided at the moviebuff.com web site or through its related services. As a result, West Coast was unable to use that domain name.
It is not enough to engage in Internet based searches of registered trademarks at the Patent and Trademark Office and of Internet domain names at NSI.com. There is an ongoing flood of registrations in both offices for trademarks and domain names and you need to have the most current and complete information possible. If you are considering international trade or business via this Internet business, your attorney must also be prepared to investigate the availability of these marks and names in the foreign nations where business is to be conducted and then file appropriate applications to register these names. Simply put, your attorney should not only register any key domain names with the appropriate domain name authorities but may advise you to file and prosecute appropriate trademark applications to fully protects your rights and interests in this key piece of intellectual property.
SOURCE:-
http://www.technologyevaluation.com/research/articles/legal-considerations-in-e-commerce-15188/
Can They Do That?
"I sent them an e-mail and the next time I looked at their website they had posted the mail, with my name and address for everyone to see. Can't I sue them for violating my privacy?" asked one shopper. "Somebody told me that my competitor has already taken the name of my store as an Internet address. Can they do that?" wondered the owner of a small chain of shoe stores. "I heard that someone has a patent on the whole idea of a shopping cart. How can they get a patent for that?, What can I do if they sue me?" complained the CEO of an on-line cosmetics site.
What exactly are the rules for business on the Internet? How does a new business make sure that it is following those rules, and protecting itself against legal challenges from other companies and irate consumers? Legal advice about the most important legal steps to be taken when entering into an Internet-based business venture can be essential for the venture's long-term success. This article will help you understand the kinds of information you need to provide to your attorney to get the best possible advice on setting up you new Internet business.
Where to Start
Although you may be already thinking about the complex contractual issues of buying and selling on-line, or about protecting your business from being hailed into foreign courts, your attorney will probably want to start with the key intellectual property components forming the core of your electronic business. So the first item of discussion will undoubtedly be your business plan.
Electronic commerce is like any business undertaking. As with any business, there needs to be a well thought out business plan that includes the details on what the business entails, who will be involved in the business, who will carry out the various business steps and how the business will achieve its financial goals. Unfortunately, the current gold rush mentality surrounding Internet stocks and IPO's has created a feeling among many in the business community that they need to jump into the E-commerce arena or risk losing a significant competitive advantage. Your attorney will be aware that many of the Internet-based business ventures rolled out in the last few years have spent large sums on start-up and still have not made any profits.
So don't be surprised or impatient if, before spending a significant amount of her time and your money your attorney's initial focus is on whether you have completed a detailed business plan with solid financial projections. She has already seen far to may people who don't recognize that a poorly planned venture cannot be a success in cyberspace any more than it can be in any other venue. Once she has determined that you have defined a financially feasible and technologically appropriate Internet based business, your attorney will engage in some or all of following key lines of inquiry.
Trademarks and Domain Names
Business commentators and Internet consultants alike make it clear that "branding" and key trademarks and trade names are critically important to most successful Internet businesses. AOL, Amazon.com, E-bay, E*Trade and others are Internet brand names known to a significant portion of today's business and consumer population. As a result, trademarks and domain names are often one of the two or three most important business considerations for an E-commerce business plan. This area also presents some of the most significant legal pitfalls for companies that do not undertake the proper investigation and preservation of proposed trademarks and domain names.
Although you may have been able to register a catchy Internet domain name, it may well be that a registered trademark in the same business category will trump that domain name and likely prohibit its use altogether. In one case, Brookfield Communications had already registered the trademark "Movie Buff" when West Coast Entertainment Corp. tried to use it as a domain name. Although West Coast was able to secure the domain name, a court found that because of the similarity of the businesses at issue consumers would likely be confused as to the source of the information or products provided at the moviebuff.com web site or through its related services. As a result, West Coast was unable to use that domain name.
It is not enough to engage in Internet based searches of registered trademarks at the Patent and Trademark Office and of Internet domain names at NSI.com. There is an ongoing flood of registrations in both offices for trademarks and domain names and you need to have the most current and complete information possible. If you are considering international trade or business via this Internet business, your attorney must also be prepared to investigate the availability of these marks and names in the foreign nations where business is to be conducted and then file appropriate applications to register these names. Simply put, your attorney should not only register any key domain names with the appropriate domain name authorities but may advise you to file and prosecute appropriate trademark applications to fully protects your rights and interests in this key piece of intellectual property.
SOURCE:-
http://www.technologyevaluation.com/research/articles/legal-considerations-in-e-commerce-15188/
0 comments:
Post a Comment