Affiliate Agreements and  the Proposed Internet Sales Tax How Can They Affect You? Presented by: David Bates, Esq.  [email...
<ul><li>This presentation and related information have been prepared by Gunster, Yoakley & Stewart, P.A. for information p...
Understanding Affiliate Marketing Terms of Service Agreements Affiliate Marketing Agreements
Key Terms <ul><li>Enrollment in the program </li></ul><ul><ul><li>Application to become an affiliate </li></ul></ul><ul><u...
Key Terms <ul><li>Types of permitted Links </li></ul><ul><li>Designated software </li></ul><ul><li>Right to approve links ...
Key Terms <ul><li>Transaction processing </li></ul><ul><ul><li>Retain right to reject orders in sole discretion </li></ul>...
Key Terms <ul><li>Policies and pricing  </li></ul><ul><li>Promotion of affiliation </li></ul><ul><li>Responsibility for af...
Key Terms <ul><li>Indemnification </li></ul><ul><li>Term and termination </li></ul><ul><li>Forfeiture of all amounts payab...
Key Terms <ul><li>Modification of terms of agreement </li></ul><ul><li>Independent contractor relationship </li></ul><ul><...
Key Terms <ul><li>Governing law </li></ul><ul><li>Arbitration </li></ul><ul><li>Jurisdiction and venue </li></ul><ul><li>N...
Proposed Internet Sales Tax
Background <ul><li>1992 – Quill v. North Dakota – Need a “physical presence” </li></ul><ul><li>Offices, branches, warehous...
Recent Events <ul><li>2008 – New York’s “Complex Nexus” and “Amazon Tax” </li></ul><ul><li>When does it apply?  When selle...
Recent Events <ul><li>North Carolina and Rhode Island passed laws similar to New York’s  </li></ul><ul><li>In 2009, simila...
Is Florida Next? <ul><li>October 2009 – Senator Nancy Detert (R-Venice) – researching the possibility of requiring merchan...
Is Florida Next?  From LinkShare, April 2009 ( http://blog.linkshare.com/wp-content/uploads/2009/04/flmap.jpg )
Effect on Florida Affiliates <ul><li>“Amazon Tax” </li></ul><ul><li>“Streamlined Sales Tax” </li></ul>
Florida’s lawyers for business. GUNSTER.COM | (800) 749-1980 FORT LAUDERDALE | WEST PALM BEACH | JACKSONVILLE | MIAMI | ST...
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Affiliate Marketing Agreements and Internet Sales Tax - Affiliate Marketing Workshop

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Slides from November 20, 2009 presentation by Gunster attorneys Gaida Zirkelbach and David Bates at the South Florida Interactive Marketing Association\'s Affiliate Marketing Workshop - Covers Affiliate Marketing Agreements and Internet Sales Tax

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Affiliate Marketing Agreements and Internet Sales Tax - Affiliate Marketing Workshop

  1. 1. Affiliate Agreements and the Proposed Internet Sales Tax How Can They Affect You? Presented by: David Bates, Esq. [email_address] and Gaida Zirkelbach, Esq. [email_address] Gunster – Florida’s Lawyers For Business
  2. 2. <ul><li>This presentation and related information have been prepared by Gunster, Yoakley & Stewart, P.A. for information purposes only and do not constitute advertising, a solicitation, or legal advice. Such presentation, materials and information contained herein is not intended to create, and receipt thereof does not constitute formation of, and attorney-client relationship. The presentation, materials and information should not be relied upon for any purpose without seeking legal advice from a licensed attorney. The information contained in this presentation and related course materials is provided only as general information and may or may not reflect the most current legal developments; accordingly, this information is not promised or guaranteed to be correct or complete. Gunster, Yoakley & Stewart, P.A. expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this presentation or related course materials and information. </li></ul>
  3. 3. Understanding Affiliate Marketing Terms of Service Agreements Affiliate Marketing Agreements
  4. 4. Key Terms <ul><li>Enrollment in the program </li></ul><ul><ul><li>Application to become an affiliate </li></ul></ul><ul><ul><li>Approval criteria </li></ul></ul><ul><ul><li>Web site’s right to reject in its sole discretion – sites that promote violence, drugs, nudity, illegal activities, violate IP rights, include company’s name in its IP address </li></ul></ul><ul><li>Representation that affiliate will abide by all laws and FTC’s Endorsement Guidelines and spam laws </li></ul>
  5. 5. Key Terms <ul><li>Types of permitted Links </li></ul><ul><li>Designated software </li></ul><ul><li>Right to approve links </li></ul>
  6. 6. Key Terms <ul><li>Transaction processing </li></ul><ul><ul><li>Retain right to reject orders in sole discretion </li></ul></ul><ul><li>Definition of qualified transaction </li></ul><ul><li>Amount of referral fees </li></ul><ul><li>Reports </li></ul><ul><li>Payment of referral fees </li></ul><ul><li>Time to object to payments </li></ul>
  7. 7. Key Terms <ul><li>Policies and pricing </li></ul><ul><li>Promotion of affiliation </li></ul><ul><li>Responsibility for affiliate’s site </li></ul><ul><li>Prohibition on sponsored links </li></ul>
  8. 8. Key Terms <ul><li>Indemnification </li></ul><ul><li>Term and termination </li></ul><ul><li>Forfeiture of all amounts payable upon termination for breach </li></ul>
  9. 9. Key Terms <ul><li>Modification of terms of agreement </li></ul><ul><li>Independent contractor relationship </li></ul><ul><li>Limitation on liability </li></ul><ul><li>Disclaimers of all warranties </li></ul>
  10. 10. Key Terms <ul><li>Governing law </li></ul><ul><li>Arbitration </li></ul><ul><li>Jurisdiction and venue </li></ul><ul><li>Notices </li></ul><ul><li>Assignment </li></ul><ul><li>Entire agreement </li></ul>
  11. 11. Proposed Internet Sales Tax
  12. 12. Background <ul><li>1992 – Quill v. North Dakota – Need a “physical presence” </li></ul><ul><li>Offices, branches, warehouses, employees, etc. </li></ul><ul><li>Customers alone (i.e. economic presence) not enough for a state to impose sales tax </li></ul><ul><li>Should interstate businesses have to keep track of thousands of state and local tax codes? </li></ul>
  13. 13. Recent Events <ul><li>2008 – New York’s “Complex Nexus” and “Amazon Tax” </li></ul><ul><li>When does it apply? When seller pays commission to NY resident related to the sale of over $10,000 of goods in 12 months </li></ul>
  14. 14. Recent Events <ul><li>North Carolina and Rhode Island passed laws similar to New York’s </li></ul><ul><li>In 2009, similar laws were either rejected by the legislature or vetoed by the Governor in California, Connecticut, Hawaii, Minnesota, and Tennessee </li></ul><ul><li>To avoid the burden of collecting taxes, large networks, such as Amazon.com and Overstock.com do not allow affiliates from some of these states </li></ul>
  15. 15. Is Florida Next? <ul><li>October 2009 – Senator Nancy Detert (R-Venice) – researching the possibility of requiring merchants to collect sales tax on online sales </li></ul><ul><li>Internet sales tax could result in revenue of nearly $2 billion per year for Florida ($20 billion per year by all states) </li></ul>
  16. 16. Is Florida Next? From LinkShare, April 2009 ( http://blog.linkshare.com/wp-content/uploads/2009/04/flmap.jpg )
  17. 17. Effect on Florida Affiliates <ul><li>“Amazon Tax” </li></ul><ul><li>“Streamlined Sales Tax” </li></ul>
  18. 18. Florida’s lawyers for business. GUNSTER.COM | (800) 749-1980 FORT LAUDERDALE | WEST PALM BEACH | JACKSONVILLE | MIAMI | STUART | TALLAHASSE | VERO BEACH Banking & Financial Services Business Litigation Corporate Environmental & Land Use Immigration International Labor & Employment Leisure & Resorts Real Estate Private Wealth Services Probate, Trust & Guardianship Litigation Securities Tax Technology & Entrepreneurial Companies

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