My Lawyer Made Me Do It Daniel Green Affilicon Israel June 2009


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My Lawyer Made Me Do It Daniel Green Affilicon Israel June 2009

  1. 1. My Lawyer Made me Do It! A Survey of Contracts and Documents for your Internet Business Daniel Green, Adv. Yigal Arnon & Co., Law Offices Jerusalem, Israel [email_address] June 2, 2009 (02) 623-9200
  2. 2. Overview <ul><li>Contracting in Cyberspace: How Different Is It? </li></ul><ul><li>My Lawyer Made me Do It! – A Survey of Contracts and Documents for your Internet Business </li></ul><ul><ul><ul><ul><li>Affiliate Programs and the Affiliate Agreement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Website Terms of Use (Term of Service) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Privacy Policies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copyright Notice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Earnings Disclaimer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No-Spam Policy </li></ul></ul></ul></ul><ul><li>Summary and Conclusions </li></ul>
  3. 3. Contracting in Cyberspace: How Different is it?
  4. 4. <ul><ul><li>A contract by any other name is a contract </li></ul></ul><ul><ul><li>Whether on-line or not, a contract is a legally enforceable agreement between two or more persons or parties – often for the supply of goods or services </li></ul></ul><ul><ul><li>Similarity of substance </li></ul></ul><ul><ul><li>Difference in process </li></ul></ul><ul><ul><ul><li>More impersonal interaction of the parties </li></ul></ul></ul><ul><ul><ul><li>You “sign” it by clicking! </li></ul></ul></ul><ul><ul><li>But be aware… before you click, know what you’re accepting… </li></ul></ul>Online Contracting
  5. 5. <ul><li>Just Imagine… </li></ul><ul><ul><li>Click here if you agree . . . </li></ul></ul><ul><ul><li>“ This agreement creates an exclusive arrangement between the parties ” </li></ul></ul><ul><ul><li>“ Partner agrees to pay annual renewals of $5000 per year for a minimum of 3 years ” </li></ul></ul><ul><ul><li>“ You agree to disclose your customer lists to Company ” </li></ul></ul><ul><ul><li>“ All disputes will be resolved exclusively in the courts of Democratic People’s Republic of Korea ” </li></ul></ul>I AGREE
  6. 6. <ul><li>So . . . think before you CLICK! </li></ul><ul><li>Legal agreements are serious things! </li></ul><ul><li>And they’re binding commitments!! </li></ul>
  7. 7. My Lawyer Made me Do It! A Survey of Contracts and Documents for your Internet Business
  8. 8. <ul><ul><ul><ul><li>Affiliate Programs and the Affiliate Agreement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Website Terms of Use (Term of Service) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Privacy Policies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copyright Notice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Earnings Disclaimer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No-Spam Policy </li></ul></ul></ul></ul>
  9. 9. <ul><li>What is an Affiliate Program? </li></ul><ul><ul><li>Different types </li></ul></ul><ul><ul><li>Commonly, an arrangement whereby an online merchant website pays an affiliate website a commission to send them traffic </li></ul></ul><ul><ul><li>Affiliate website posts links to the merchant site and is paid according to particular contractual arrangements </li></ul></ul><ul><ul><li>If a link on an affiliate website brings the merchant site traffic or money , the merchant site pays the affiliate site according to the agreement </li></ul></ul>1. AFFILIATE PROGRAMS AND AFFILIATE AGREEMENTS
  10. 11. <ul><li>Main Provisions of Affiliate Agreements </li></ul><ul><ul><li>Enrollment Mechanism </li></ul></ul><ul><ul><ul><li>How does affiliate enroll in Program? </li></ul></ul></ul><ul><ul><ul><li>Accomplished by affiliate completing an Application Form and submitting it via the sponsor’s website </li></ul></ul></ul><ul><ul><ul><li>Sponsor may evaluate the application and notify applicant of acceptance or rejection </li></ul></ul></ul><ul><ul><ul><li>Good Practice – Specify grounds on which an application may be rejected (e.g. affiliate site incorporates unlawful, harmful, racist, obscene, etc., content) </li></ul></ul></ul>
  11. 12. <ul><ul><li>Use of Links </li></ul></ul><ul><ul><ul><li>Specify how “Links” will be made available to affiliate </li></ul></ul></ul><ul><ul><ul><li>“ Links” include banner advertisements, button links, widgets, etc. </li></ul></ul></ul><ul><ul><ul><li>Express authorization (license) by merchant to allow posting of “Links”, and corresponding obligation of affiliate to post “Links” </li></ul></ul></ul><ul><ul><ul><li>Consider a requirement for the parties to cooperate in order to establish and maintain the Links </li></ul></ul></ul><ul><ul><ul><li>Does affiliate have a right to modify or expand “Links”? Is consent of merchant required? </li></ul></ul></ul><ul><ul><ul><li>Be clear… </li></ul></ul></ul>
  12. 13. <ul><ul><li>Compensation – Examples of Commission Arrangements: </li></ul></ul><ul><ul><ul><li>Merchant pays Affiliates: </li></ul></ul></ul><ul><ul><ul><ul><li>Pay-per-Click : Merchant pays affiliate based on number of visitors who click on the link to visit merchant’s site </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pay-per-Lead : Payment based on number of visitors affiliate refers who sign up as leads (visitors fill provide information at merchant’s site) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pay-per-Sale : Payment based on sales made to customers sent to merchant’s site by affiliate [Fixed amount vs. % of “ Net Sales ”] </li></ul></ul></ul></ul><ul><ul><ul><li>Affiliate remits payment to Merchant </li></ul></ul></ul><ul><ul><ul><ul><li>Other issues to be discussed with counsel </li></ul></ul></ul></ul>
  13. 14. <ul><ul><li>Access to Reports and Information </li></ul></ul><ul><ul><ul><li>Where merchant prepares reports for affiliate, be clear about what information they include </li></ul></ul></ul><ul><ul><ul><ul><li>volume and number of clicks </li></ul></ul></ul></ul><ul><ul><ul><ul><li>rejections </li></ul></ul></ul></ul><ul><ul><ul><ul><li>commission accrual </li></ul></ul></ul></ul><ul><ul><ul><li>Access to reports </li></ul></ul></ul><ul><ul><ul><ul><li>Online </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Email </li></ul></ul></ul></ul><ul><ul><ul><li>If reports will be available online, set out mechanism for assigning passwords </li></ul></ul></ul>
  14. 15. <ul><ul><li>Payment Arrangements </li></ul></ul><ul><ul><ul><li>Frequency of payment </li></ul></ul></ul><ul><ul><ul><li>Consider minimum threshold </li></ul></ul></ul><ul><ul><ul><li>What happens if there is a chargeback (e.g., on a pay-per-sale commission arrangement) – Will commission need to be repaid? Will it be deducted from subsequent commission payment? </li></ul></ul></ul><ul><ul><li>Affiliate’s Responsibility for its Site </li></ul></ul><ul><ul><ul><li>Development, operation and maintenance, and all material and information appearing on its site </li></ul></ul></ul><ul><ul><ul><li>Affiliate should confirm that: </li></ul></ul></ul><ul><ul><ul><ul><li>materials do not infringe third party rights </li></ul></ul></ul></ul><ul><ul><ul><ul><li>all necessary rights to display the materials </li></ul></ul></ul></ul>
  15. 16. <ul><ul><li>Term and Termination </li></ul></ul><ul><ul><ul><li>Term </li></ul></ul></ul><ul><ul><ul><ul><li>Generally, no fixed term </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Term usually commences upon acceptance of merchant’s application to join the program and continues until notice is given by either party to the other </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Watch out for automatic renewals (especially where there is payment) </li></ul></ul></ul></ul><ul><ul><ul><li>Consequences of Termination </li></ul></ul></ul><ul><ul><ul><ul><li>“ At-will” termination – Outstanding commissions generally paid </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ For cause” termination (breach of the terms by affiliate) – eligibility for outstanding commissions is often revoked </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Obligation to remove “Links” and participation in Affiliate Program ceases </li></ul></ul></ul></ul>
  16. 17. <ul><ul><li>Confidentiality and Publicity </li></ul></ul><ul><ul><ul><li>Will the parties exchange confidential information? </li></ul></ul></ul><ul><ul><ul><li>If so, non-disclosure and non-use provisions appropriate to the sensitivity of the information should be included </li></ul></ul></ul><ul><ul><ul><li>Can affiliates publish or distribute materials referencing the merchant? Is advance approval required? </li></ul></ul></ul><ul><ul><ul><li>Similarly, if the merchant wants to use affiliate’s name and logo for marketing or other purposes, this right should be set out in the agreement, as well as its scope </li></ul></ul></ul>
  17. 18. <ul><ul><li>Disclaimers </li></ul></ul><ul><ul><ul><li>Merchants should make clear that they do not make any reps and warranties: </li></ul></ul></ul><ul><ul><ul><ul><li>(i) about products or services made available through the affiliate network (e.g., fitness for a particular purpose, non-infringement, etc.), or </li></ul></ul></ul></ul><ul><ul><ul><ul><li>(ii) that the operation of the merchant site will be uninterrupted or error-free </li></ul></ul></ul></ul>
  18. 19. <ul><ul><li>Limitation of Liability </li></ul></ul><ul><ul><ul><li>It’s all about risk . . . </li></ul></ul></ul><ul><ul><ul><li>What is your exposure? </li></ul></ul></ul><ul><ul><ul><li>Establish clear limits to liability, to the maximum extent legally possible </li></ul></ul></ul><ul><ul><ul><li>Consider excluding indirect and consequential damages </li></ul></ul></ul><ul><ul><ul><li>Cap liability to a quantifiable amount: </li></ul></ul></ul><ul><ul><ul><ul><li>fixed amount </li></ul></ul></ul></ul><ul><ul><ul><ul><li>amount of commissions paid </li></ul></ul></ul></ul><ul><ul><ul><ul><li>other </li></ul></ul></ul></ul>
  19. 20. <ul><ul><li>Miscellaneous Provisions </li></ul></ul><ul><ul><ul><li>Dispute Resolution </li></ul></ul></ul><ul><ul><ul><ul><li>Mediation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Arbitration </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Litigation </li></ul></ul></ul></ul><ul><ul><ul><li>Governing Law and Jurisdiction – Especially important in Internet agreements </li></ul></ul></ul><ul><ul><ul><li>Assignment Rights </li></ul></ul></ul><ul><ul><ul><li>Boilerplate </li></ul></ul></ul>
  20. 21. <ul><li>Acceptance of Agreement </li></ul><ul><ul><li>Remember, this is a binding contract </li></ul></ul><ul><ul><li>Need to ensure acceptance of the terms </li></ul></ul><ul><ul><li>Hard copy contract – Print, sign and send in </li></ul></ul><ul><ul><li>Online Agreement – Click and submit </li></ul></ul><ul><ul><li>Key: Ensure active consent </li></ul></ul><ul><ul><ul><li>give user opportunity to review terms </li></ul></ul></ul><ul><ul><ul><li>have user scroll to bottom before clicking </li></ul></ul></ul>I AGREE
  21. 22. <ul><ul><ul><ul><li>Affiliate Programs and the Affiliate Agreement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Website Terms of Us e </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Privacy Policies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copyright Notice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Earnings Disclaimer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No-Spam Policy </li></ul></ul></ul></ul>
  22. 23. 2. WEBSITE TERMS OF USE <ul><li>Purpose </li></ul><ul><ul><li>A contract defining the legal relationship between the site and the user ( “ You can use my site and these are the terms… ” ) </li></ul></ul><ul><ul><li>Remember – Websites are varied and have different purposes </li></ul></ul><ul><ul><li>Prepare Terms of Use carefully with the unique aspects of the site in mind </li></ul></ul><ul><ul><li>Don’t copy! </li></ul></ul><ul><li>Principal Terms </li></ul><ul><ul><li>Since the Terms of Use document is a legal agreement, many of the key provisions have already been outlined above </li></ul></ul><ul><ul><li>Additional terms include the following: </li></ul></ul>
  23. 24. <ul><ul><ul><li>User Conduct Rules </li></ul></ul></ul><ul><ul><ul><ul><li>Sets out permitted and forbidden “behavior” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Guidelines for: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>interactions among users </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>illegal content </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>restricting users to personal use or permitting commercial use </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>prohibitions on unsolicited marketing / emailing [Spam] </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Reserve the right to investigate and take appropriate action against users who violates Conduct Rules </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Action may include removing the offending communication and terminating the membership of violators </li></ul></ul></ul></ul>
  24. 25. <ul><ul><ul><li>Proprietary Rights </li></ul></ul></ul><ul><ul><ul><ul><li>Be clear that the site’s content is owned by the site </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Think about ownership of: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>user-generated content uploaded to the site </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>user-generated suggestions </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Assignment Issues where content will become property of the site </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Reps and warranties re: ownership of content </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Consider whether licenses will be granted </li></ul></ul></ul></ul>
  25. 26. <ul><ul><ul><li>Age Statement </li></ul></ul></ul><ul><ul><ul><ul><li>Who is legally allowed to use the site? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In the US: Under 13 years old - parental consent required </li></ul></ul></ul></ul><ul><ul><ul><ul><li>For Adult content: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Make it clear before access is granted </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Users less than 18 years old not permitted to use site </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Other Provisions </li></ul></ul></ul><ul><ul><ul><ul><li>Disclaimers and Liability Limitations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Choice of Law and Venue </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copyright and Privacy – Often the Terms of Use will include or have links to copyright notices and privacy policies [as discussed below] </li></ul></ul></ul></ul>
  26. 27. <ul><li>Acceptance and Enforceability of Terms </li></ul><ul><ul><li>General expectation that Terms of Use will always be enforceable </li></ul></ul><ul><ul><li>But . . . This depends on how “consent” is obtained </li></ul></ul><ul><ul><li>Which in turns depends on the nature of the site and services, the risks involved , and the site’s marketing approach </li></ul></ul><ul><ul><li>Examples: </li></ul></ul><ul><ul><ul><li>(i) least enforceable – Link to Terms without formal “acceptance” </li></ul></ul></ul><ul><ul><ul><li>(ii) more enforceable - “Force” users to review the terms and actively “accept” them </li></ul></ul></ul><ul><ul><li>Generally, the more active the “acceptance” is, the greater the likelihood the Terms of Use will be enforceable </li></ul></ul>
  27. 28. Modifications <ul><ul><li>Ubiquitous clause: “ Company reserves the right to modify the terms… ” </li></ul></ul><ul><ul><li>Recent “ Blockbuster ” case in US challenges this: Lawsuit over use of Facebook’s “beacon” ad system that shared movie titles rented at Blockbuster with a person’s Facebook “friends”. Plaintiff alleged violation of the US Video Privacy Protection Act, and also sought class-action status for the proceeding </li></ul></ul><ul><ul><li>Blockbuster’s Terms of Use – Disputes to be resolved by arbitration (and users waive their right to class action proceedings) </li></ul></ul><ul><ul><li>US District Court Judge ruled </li></ul></ul><ul><ul><ul><li>The case can go to court </li></ul></ul></ul><ul><ul><ul><li>Blockbuster’s Terms are “ illusory ” and “ unenforceable ” since the company reserves the right to change them at any time! </li></ul></ul></ul>
  28. 29. <ul><li>Modifications (cont.) </li></ul><ul><ul><li>Weight of case remains to be seen, but potentially broad implications for the Internet as a whole </li></ul></ul><ul><ul><li>So . . . Steps to increase enforceability of modifications: </li></ul></ul><ul><ul><ul><li>Reader-friendly, reasonable and clear terms </li></ul></ul></ul><ul><ul><ul><li>Changes should be prospective (not retroactive) </li></ul></ul></ul><ul><ul><ul><li>Procedures to actively notify registered users of changes (email, postings on home pages, etc.) </li></ul></ul></ul><ul><ul><ul><li>Re-acceptance of modified terms </li></ul></ul></ul>
  29. 30. <ul><ul><ul><ul><li>Affiliate Programs and the Affiliate Agreement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Website Terms of Use (Term of Service) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Privacy Policies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copyright Notice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Earnings Disclaimer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No-Spam Policy </li></ul></ul></ul></ul>
  30. 31. 3. PRIVACY POLICIES <ul><li>In General </li></ul><ul><ul><li>Where a site gathers any information from visitors, even if limited to visitor’s name and email address, include a privacy policy </li></ul></ul><ul><ul><li>Describes what information is collected from users and how that information will be used </li></ul></ul><ul><ul><li>Often the method by which the information is collected is also described </li></ul></ul>
  31. 32. <ul><li>Status of a Privacy Policy </li></ul><ul><ul><li>Not an agreement in the traditional sense </li></ul></ul><ul><ul><li>Rather, a commitment or promise on the part of the site to act in the described manner with respect to certain information </li></ul></ul><ul><ul><li>Policy should reflect the actual use of the information collected </li></ul></ul><ul><ul><li>If this is not the case, and the commitments made are violated , may be actionable under the FTC Act (in the US) as an unfair or deceptive trade practice </li></ul></ul><ul><ul><li>Each site should carefully consider the appropriate privacy policy in light of its activities </li></ul></ul>
  32. 33. <ul><li>The FTC and Foreign Laws </li></ul><ul><ul><li>The US Federal Trade Commission (“FTC”) – Agency with primary responsibility for the enforcement of privacy commitments made by website operators (states also have legislated privacy laws) </li></ul></ul><ul><ul><li>Where users are located outside the US, or where personal information is being transferred across borders, the privacy laws of other countries may also need to be taken into account </li></ul></ul>
  33. 34. <ul><li>Principal Provisions of Privacy Policies </li></ul><ul><ul><li>1. What Information is Collected </li></ul></ul><ul><ul><ul><li>Specify the type of information collected (Personal and Other Information) </li></ul></ul></ul><ul><ul><ul><li>Be broad in the description, but best not to collect more information than reasonably necessary </li></ul></ul></ul><ul><ul><ul><li>Note that under COPPA in the US (Children’s Online Privacy Protection Act), parental permission is generally required to collect personal information from children under 13 years old </li></ul></ul></ul>
  34. 35. <ul><ul><li>2. How the Information is Used </li></ul></ul><ul><ul><ul><li>Accurately describe how information collected will be used </li></ul></ul></ul><ul><ul><ul><li>Examples: </li></ul></ul></ul><ul><ul><ul><ul><li>Personal Information – Responding to user inquiries, for marketing and promotion purposes, to fulfill transactions, etc. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Other (Technical) Information – Improve experience, enhance administration of site, address technical problems, etc. </li></ul></ul></ul></ul>
  35. 36. <ul><li>3. Transmission of Information to Third Parties </li></ul><ul><ul><li>Will the information be disclosed to third parties? </li></ul></ul><ul><ul><li>If so, be clear about the general identity of recipients </li></ul></ul><ul><ul><li>If not, say so (e.g., “ Company does not disclose, sell or rent the information that you provide about yourself to third parties ”) </li></ul></ul><ul><ul><li>In any case . . . good practice to state that information may be disclosed in response to legal proceedings or requests by law enforcement agencies </li></ul></ul>
  36. 37. <ul><li>4. Security Arrangements </li></ul><ul><ul><li>Ensure reasonable security arrangements for information </li></ul></ul><ul><ul><li>Good practice to include a statement to this effect </li></ul></ul><ul><ul><li>But . . . Be clear that the site cannot ensure “perfect security” or that its databases will not be improperly accessed by third parties </li></ul></ul><ul><ul><li>User should understand that the transmission of information is at his/her own risk </li></ul></ul>
  37. 38. <ul><li>5. Links to Third Party Sites </li></ul><ul><ul><li>If the site contains links to third party sites: </li></ul></ul><ul><ul><ul><li>Make it clear the site is not responsible for third party privacy policies and/or practices </li></ul></ul></ul><ul><ul><ul><li>Advise user to review the privacy policy on the third party site </li></ul></ul></ul><ul><ul><li>Include reference in Terms of Use </li></ul></ul><ul><li>6. Contact Details </li></ul><ul><ul><li>“ Company cares deeply about online privacy… ” </li></ul></ul><ul><ul><li>Advisable to include contact details (e.g., [email_address] ) for questions, comments and concerns </li></ul></ul>
  38. 39. <ul><ul><ul><ul><li>Affiliate Programs and the Affiliate Agreement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Website Terms of Use (Term of Service) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Privacy Policies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copyright Notice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Earnings Disclaimer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No-Spam Policy </li></ul></ul></ul></ul>
  39. 40. <ul><li>What is a Copyright / Trademark Notice? </li></ul><ul><ul><li>Copyright © 2009 Company, Inc. All Rights Reserved. </li></ul></ul><ul><ul><li>A clear notice to users that states that the content of the site are protected by copyright and all rights to it are reserved to the site / company </li></ul></ul><ul><ul><li>Content includes graphics, images, text, logos, icons, and software </li></ul></ul>4. COPYRIGHT AND TRADEMARK NOTICES
  40. 41. <ul><ul><li>Include restrictions on what may be done with copyrighted material (e.g., “ You may not copy , resell , or redistribute any part of the site without prior authorization ”) </li></ul></ul><ul><ul><li>For Trademarks : </li></ul></ul><ul><ul><ul><li>State that the Company name and Company logo are trademarks of Company </li></ul></ul></ul><ul><ul><ul><li>States that all other trademarks are either trademarks or registered trademarks of their respective owners </li></ul></ul></ul><ul><ul><ul><li>Includes clear restrictions on what may be done with trademarks </li></ul></ul></ul>
  41. 42. <ul><li>Reference to the DCMA </li></ul><ul><ul><li>Good practice to include mention of the US Digital Millennium Copyright Act of 1998 (the “DMCA”) </li></ul></ul><ul><ul><li>DMCA provides recourse for copyright owners who believe that material appearing on the Internet infringes their rights under US copyright law </li></ul></ul><ul><ul><li>Include an address to which “ take down ” notices or counter-notices of copyright infringement can be sent </li></ul></ul>
  42. 43. <ul><li>Sample provision: </li></ul><ul><ul><ul><li>Copyright © 2009 Company, Inc. All Rights Reserved. </li></ul></ul></ul><ul><ul><ul><li>You acknowledge that the Site and all of its contents and components are copyrighted, and that, except for a single copy for your personal use only, you may not copy, resell, or redistribute any part of the Site in any manner without the express written permission of the owner(s). </li></ul></ul></ul><ul><ul><ul><li>[Company name] and other Company logos and product and service names are trademarks of Company, Inc. All other trademarks are trademarks or registered trademarks of their respective owners. Nothing in these Terms of Service grants you any right to use any trademark, service mark, logo, or trade name of Company or any third party. </li></ul></ul></ul><ul><ul><ul><li>Copyright Owners’ Rights under the Digital Millennium Copyright Act Of 1998 : The Digital Millennium Copyright Act of 1998 (the “DMCA”) provides recourse for copyright owners who believe that material appearing on the Internet infringes their rights under US copyright law. If you believe that something appearing on the Site infringes your copyright, you may send us a notice requesting that it be removed, or access to it blocked. If you believe that such a notice has been wrongly filed against you, the DMCA lets you send us a counter-notice. Notices and counter-notices must meet the DMCA’s requirements . We suggest that you consult your legal advisor before filing a notice or counter-notice. Be aware that there can be substantial penalties for false claims . Send notices and counter-notices to [email_address] . If you need to contact us for any other reason, please use our Contact Us section. </li></ul></ul></ul>
  43. 44. <ul><ul><ul><ul><li>Affiliate Programs and the Affiliate Agreement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Website Terms of Use (Term of Service) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Privacy Policies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copyright Notice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Earnings Disclaimer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No-Spam Policy </li></ul></ul></ul></ul>
  44. 45. 5. EARNINGS DISCLAIMER <ul><li>Applicability </li></ul><ul><ul><li>Where there are statements about potential earnings or results achievable by using an online program or information on a site, include an “Earnings Disclaimer” </li></ul></ul><ul><ul><li>Purpose – To avoid unfair and deceptive trade practices (FTC) </li></ul></ul>– Disclaimers and disclosures must be “clear and conspicuous”
  45. 46. <ul><li>Content of an Earnings Disclaimer </li></ul><ul><ul><ul><li>(i) a statement to the effect that the site does not guarantee any specific results </li></ul></ul></ul><ul><ul><ul><li>(ii) any statements on the site about earnings are examples only </li></ul></ul></ul><ul><ul><ul><li>(iii) the same result is not assured for every user </li></ul></ul></ul><ul><li>And remember . . . </li></ul><ul><li>NEVER state that a person will earn X dollars in Y time! </li></ul>
  46. 47. <ul><ul><ul><ul><li>Affiliate Programs and the Affiliate Agreement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Website Terms of Use (Term of Service) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Privacy Policies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Copyright Notice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Earnings Disclaimer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No-Spam Policy </li></ul></ul></ul></ul>
  47. 48. <ul><li>Commercial email or unsolicited bulk email, including “junk mail”, which has not been requested by the recipient </li></ul><ul><li>Include an anti-spam policy where appropriate (Terms of Use)  </li></ul><ul><li>U.S. CAN-SPAM Act of 2003 ( C ontrolling the A ssault of N on- S olicited P ornography and M arketing A ct) – Enforced by the FTC </li></ul><ul><li>Requirements for senders of commercial email, sets out penalties for spammers, and gives consumers the right to opt-out </li></ul><ul><li>Sanctions: Fines and criminal penalties </li></ul>6. ANTI-SPAM POLICY
  48. 49. <ul><li>Hi-lights of the CAN-SPAM Act : </li></ul><ul><ul><li>Bans false or misleading header information </li></ul></ul><ul><ul><ul><li>Email’s “From”, “To” and routing information must be accurate and identify the person who initiated the email </li></ul></ul></ul><ul><ul><li>Prohibits deceptive subject lines </li></ul></ul><ul><ul><ul><li>May not mislead recipient about contents or subject matter of the message </li></ul></ul></ul><ul><ul><li>Recipients of email must have an opt-out method </li></ul></ul><ul><ul><ul><li>Sender must provide a return email address or Internet-based response mechanism so recipient can ask sender not to send future email, and sender must honor the request </li></ul></ul></ul>
  49. 50. Anti-Spam in Israel <ul><li>As of December 1, 2008, Amendment No. 40 to the Israeli Communications Law (Bezeq and Broadcasting) came into effect </li></ul><ul><li>Prohibits dissemination of commercial e-mail advertisements, as well as other forms of electronic advertisements, without the recipient’s prior express consent </li></ul><ul><li>Contains mandatory notice requirements </li></ul><ul><li>Liability and penalties for non-compliance </li></ul>
  50. 51. Summary and Conclusion
  51. 52. Summary and Conclusion <ul><li>On-line agreements are legally-binding – take them seriously </li></ul><ul><li>One-size does NOT fit all–consider the needs of your business </li></ul><ul><li>Strive for an enforceable acceptance process </li></ul><ul><li>Privacy policies and following through ( Do what you say and say what you do! ) </li></ul><ul><li>Dynamic field – the law if always evolving </li></ul><ul><li>And remember, consult counsel when needed! </li></ul>
  52. 53. THANK YOU Daniel Green, Adv. [email_address] (02) 623-9200 +972-2-623-9200 Yigal Arnon & Co., Law Offices Jerusalem, Israel