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Social media
American Marketing
Association
November 15, 2011
John H. Rees
Callister Nebeker & McCullough
Traditional marketing. . . What’s changed
Low barrier to entry
User generated content
Who took the photos . . . How tough is it
And when the wind blows . . . .
Courtesy of http://photoeverywhere.co.uk
Anonymity
Manipulation and false identity
Informality . . . 140 characters
55.6% of all statistics are fabricated. . .
Anybody may join the game
Banks on Facebook . . .What happened
AmEx onTwitter
What’s around the next corner . . .
Copy with care
Overlooking ownership
Understand user generated content (UGC)
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
True or false: Imitation is the
highest form of flattery
Flattered
Be original
©
Injunction
Damages
and lost
profits
Crime
Statutory
damages
up to
$150,000
Attorneys fees
Copyright infringement remedies . . . or
what if I get caught
What is a copyright?
Protects original works of authorship fixed in a
tangible medium of expression
Owner has exclusive rights:
• Reproduction
• Create derivative works
• Distribution
• Public display
• Public performance
Protects expression, not the ideas
• Notice not necessary for infringement claim
• Giving copyright notice refutes claim of innocent
infringement
• May affect damage awards
©Year of first publication, name of owner
Copyright
notices
Copyright infringement
Standard for infringement:
• Valid copyright and copying of
elements capable of protection
Fair use—parody, other uses
What about employees
who copy with or without
employer’s knowledge
I won’t get caught . . . But statutory damages
Copy with care
Overlooking ownership
Understand user generated content (UGC)
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
There’s IP to protect, but that’s not all
Patents: Inventor(s)
Trademarks: User of the marks/goodwill
Copyright: Author/work made for hire
Trade secrets: Creator/preservation
What is a campaign . . . And who owns it
Registration and technical
contact
Review your contract
Confirm with the registrar
www.whois.com
www.networksolutions.com
Cybersquatting
Protect domain name
Which element has the greatest value
Channels
Copy with care
Overlooking ownership
Understand user generated content
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
Copyright infringement
Vicarious liability
Contributory liability
DMCA--Safe harbor for online service
providers
• Not available to content providers, only online
service provider
• Online service provider needs to adopt a policy
addressing issues under DMCA
• Follow take down provisions
• Cannot have actual knowledge of infringement
without acting
• Service provider may not directly benefit
financially, if the service provider has the right to
control content
DMCA--Safe harbor for online service
providers
• Appoint designated agent
• Respond appropriately to take down notice that
comply with DMCA
• Respond
appropriately to
counter take down
notices from
subscriber to
service
Defamation
• Publication of a false statement
• About another
• Causes harm to the reputation of that person
• Intent is not an element of the cause of action
• Social networking makes it easy to engage in
defamation
Communications Decency Act safe harbor
• Service provider is a provider or user of an
interactive computer service
Defamation safe harbor
• The asserted claim treats the
provider as a publisher or speaker
of information
• The challenged communication
is information provided by
another information content
provider—distinguish role of
content provider
Harassment
Invasion of privacy
Breach of confidentiality
Copy with care
Overlooking ownership
Understand user generated content
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
®
• Damages
• Court may award three times damages
• Lost profits
• Injunction
• Attorney’s fees
Trademark
infringement
remedies
What is a trademark?
Word, name, symbol, device
which identifies the source of
goods and services
• Slogans
• Logos
• Trade dress
• Sounds
• Colors
• Smells
Pink
Sounds
Trademark infringement
Unfair competition
Unauthorized affiliation, sponsorship, or
association
Consumers are likely to be confused as to the source
of the goods and services from use of a trademark
Does not need to be
intentional
Guess
who?
• Sight, sound, and meaning—
overall commercial impression
• Nature of the goods and
services
• Channels of trade
Trademark infringement factors
• Sophistication of consumers
• Fame of the marks
• Any actual confusion
• Number and nature of similar marks
Trademark rights accrue at common law by use
in commerce—not by registration
First to use has rights to a trademark
Common law
rights include area
of use, plus “zone
of natural
expansion”
Trademark fair use
May use as much of the mark as is reasonably necessary
to describe the goods or services
Does not include use of a logo
Accurately describe the relationship between the parties
Copy with care
Overlooking ownership
Understand user generated content
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
Bloggingand FTC Guides
Endorsing products or services is anything but risk-
free. In October, 2009, the FederalTrade
Commission (FTC) adopted revised Guides
Concerning the Use of Endorsement and
Testimonials in Advertising (Guides) which became
effective December 1, 2009. Under Section 5 of the
FederalTrade Commission Act (15 USC Section 45)
(FTC Act), the FTC has broad authority to prevent
persons from using unfair methods of competition,
or unfair or deceptive practices in commerce.
www.considerthelaw.com
FTC Guides
Copy with care
Overlooking ownership
Understand user generated content
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
Use by employees
Policy for employee use
of social media
How much use of company
resources and on company
time is acceptable
Does the company encourage
the use of social media
Policy for employee
use of social media
• Identify what constitutes social media
• Essentially any online communication
• Should address use of social media using company
owned hardware and personal devices and hardware,
such as smart phones
• What should be encouraged
• What should be prohibited or discouraged
Notices to employees
• No expectation of privacy for any company
owned or operated sites or media
• Failure to comply with the company social
media policy could result in discipline and/or
termination
• Clearly define expectations
• Training for the policy
Copy with care
Overlooking ownership
Understand user generated content
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
Background checks
Social media policies for
background checks
Issue: May an employer use information
discovered through social media that is
unrelated to the job and job
performance
TitleVII, Civil Rights Act
May not discriminate based on
protected classes
Social media policies for
background checks
May use social media for
background checks only if
legitimate business interest of the
employer
Separate out information—two
different functions
Need to provide to managers and
decision makers written guidelines
Examples of appropriate uses for
background checks
• Potential employee misrepresents his/her identity to
friend an employee of the company to gain access to
restricted information
• Information about drinking and use of drugs
• Denigrating former employer, employees, or clients
• Making discriminatory comments
• Lying about qualifications
• Sharing confidential information from a former
employer
Copy with care
Overlooking ownership
Understand user generated content
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
Concerted activity by employees
At will employees not really at will
Copy with care
Overlooking ownership
Understand user generated content
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
No false,
misleading, or
deceptive practices
or statements
Section 5, FTC Act
Copy with care
Overlooking ownership
Understand user generated content
Trademark trouble
Disclose diamonds
Engaged employees
Balance backgrounds
Concerted conundrum
Forget false statements
Taming terms of use
Terms of use
Prohibit disclosure of trade secrets and confidential
information; privacy
Privacy
• Liability under federal and state privacy laws
• Liability for negligence, and other creative legal
theories yet to be developed
• Breach of your own privacy policy
• Federal and state statutes, including GLBA and
HIPAA
Clearly identify
ownership of medium
and content—who has
control, including
domain name
Ownership of user
generated content
Terms of use
Terms of use
• Include limitation of liability
• Include representations and warranties from
content providers
Terms of use
• Include indemnification from content providers
• Consent to jurisdiction
?
Questions and answers
John H. Rees
Callister Nebeker & McCullough
jhrees@cnmlaw.com
801.530.7388

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Social media (american marketing association november 15, 2011)(wo images)

  • 1. Social media American Marketing Association November 15, 2011 John H. Rees Callister Nebeker & McCullough
  • 2. Traditional marketing. . . What’s changed
  • 5. Who took the photos . . . How tough is it
  • 6. And when the wind blows . . . . Courtesy of http://photoeverywhere.co.uk
  • 9. Informality . . . 140 characters
  • 10. 55.6% of all statistics are fabricated. . . Anybody may join the game
  • 11. Banks on Facebook . . .What happened
  • 13. What’s around the next corner . . .
  • 14. Copy with care Overlooking ownership Understand user generated content (UGC) Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 15. True or false: Imitation is the highest form of flattery
  • 16.
  • 17.
  • 19. ©
  • 20. Injunction Damages and lost profits Crime Statutory damages up to $150,000 Attorneys fees Copyright infringement remedies . . . or what if I get caught
  • 21. What is a copyright? Protects original works of authorship fixed in a tangible medium of expression Owner has exclusive rights: • Reproduction • Create derivative works • Distribution • Public display • Public performance Protects expression, not the ideas
  • 22. • Notice not necessary for infringement claim • Giving copyright notice refutes claim of innocent infringement • May affect damage awards ©Year of first publication, name of owner Copyright notices
  • 23. Copyright infringement Standard for infringement: • Valid copyright and copying of elements capable of protection Fair use—parody, other uses What about employees who copy with or without employer’s knowledge
  • 24. I won’t get caught . . . But statutory damages
  • 25. Copy with care Overlooking ownership Understand user generated content (UGC) Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 26. There’s IP to protect, but that’s not all Patents: Inventor(s) Trademarks: User of the marks/goodwill Copyright: Author/work made for hire Trade secrets: Creator/preservation
  • 27. What is a campaign . . . And who owns it
  • 28. Registration and technical contact Review your contract Confirm with the registrar www.whois.com www.networksolutions.com Cybersquatting Protect domain name
  • 29. Which element has the greatest value
  • 31. Copy with care Overlooking ownership Understand user generated content Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 33. DMCA--Safe harbor for online service providers • Not available to content providers, only online service provider • Online service provider needs to adopt a policy addressing issues under DMCA • Follow take down provisions • Cannot have actual knowledge of infringement without acting • Service provider may not directly benefit financially, if the service provider has the right to control content
  • 34. DMCA--Safe harbor for online service providers • Appoint designated agent • Respond appropriately to take down notice that comply with DMCA • Respond appropriately to counter take down notices from subscriber to service
  • 35.
  • 36.
  • 37. Defamation • Publication of a false statement • About another • Causes harm to the reputation of that person • Intent is not an element of the cause of action • Social networking makes it easy to engage in defamation
  • 38. Communications Decency Act safe harbor • Service provider is a provider or user of an interactive computer service Defamation safe harbor • The asserted claim treats the provider as a publisher or speaker of information • The challenged communication is information provided by another information content provider—distinguish role of content provider
  • 40. Copy with care Overlooking ownership Understand user generated content Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 41. ®
  • 42. • Damages • Court may award three times damages • Lost profits • Injunction • Attorney’s fees Trademark infringement remedies
  • 43. What is a trademark? Word, name, symbol, device which identifies the source of goods and services • Slogans • Logos • Trade dress • Sounds • Colors • Smells
  • 44.
  • 45.
  • 46. Pink
  • 48. Trademark infringement Unfair competition Unauthorized affiliation, sponsorship, or association Consumers are likely to be confused as to the source of the goods and services from use of a trademark Does not need to be intentional
  • 50. • Sight, sound, and meaning— overall commercial impression • Nature of the goods and services • Channels of trade Trademark infringement factors • Sophistication of consumers • Fame of the marks • Any actual confusion • Number and nature of similar marks
  • 51. Trademark rights accrue at common law by use in commerce—not by registration First to use has rights to a trademark Common law rights include area of use, plus “zone of natural expansion”
  • 52. Trademark fair use May use as much of the mark as is reasonably necessary to describe the goods or services Does not include use of a logo Accurately describe the relationship between the parties
  • 53. Copy with care Overlooking ownership Understand user generated content Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 55. Endorsing products or services is anything but risk- free. In October, 2009, the FederalTrade Commission (FTC) adopted revised Guides Concerning the Use of Endorsement and Testimonials in Advertising (Guides) which became effective December 1, 2009. Under Section 5 of the FederalTrade Commission Act (15 USC Section 45) (FTC Act), the FTC has broad authority to prevent persons from using unfair methods of competition, or unfair or deceptive practices in commerce. www.considerthelaw.com FTC Guides
  • 56. Copy with care Overlooking ownership Understand user generated content Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 58. Policy for employee use of social media How much use of company resources and on company time is acceptable Does the company encourage the use of social media
  • 59. Policy for employee use of social media • Identify what constitutes social media • Essentially any online communication • Should address use of social media using company owned hardware and personal devices and hardware, such as smart phones • What should be encouraged • What should be prohibited or discouraged
  • 60. Notices to employees • No expectation of privacy for any company owned or operated sites or media • Failure to comply with the company social media policy could result in discipline and/or termination • Clearly define expectations • Training for the policy
  • 61. Copy with care Overlooking ownership Understand user generated content Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 63. Social media policies for background checks Issue: May an employer use information discovered through social media that is unrelated to the job and job performance TitleVII, Civil Rights Act May not discriminate based on protected classes
  • 64. Social media policies for background checks May use social media for background checks only if legitimate business interest of the employer Separate out information—two different functions Need to provide to managers and decision makers written guidelines
  • 65. Examples of appropriate uses for background checks • Potential employee misrepresents his/her identity to friend an employee of the company to gain access to restricted information • Information about drinking and use of drugs • Denigrating former employer, employees, or clients • Making discriminatory comments • Lying about qualifications • Sharing confidential information from a former employer
  • 66. Copy with care Overlooking ownership Understand user generated content Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 68. At will employees not really at will
  • 69. Copy with care Overlooking ownership Understand user generated content Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 70. No false, misleading, or deceptive practices or statements Section 5, FTC Act
  • 71. Copy with care Overlooking ownership Understand user generated content Trademark trouble Disclose diamonds Engaged employees Balance backgrounds Concerted conundrum Forget false statements Taming terms of use
  • 72. Terms of use Prohibit disclosure of trade secrets and confidential information; privacy Privacy • Liability under federal and state privacy laws • Liability for negligence, and other creative legal theories yet to be developed • Breach of your own privacy policy • Federal and state statutes, including GLBA and HIPAA
  • 73. Clearly identify ownership of medium and content—who has control, including domain name Ownership of user generated content Terms of use
  • 74. Terms of use • Include limitation of liability • Include representations and warranties from content providers
  • 75. Terms of use • Include indemnification from content providers • Consent to jurisdiction
  • 76. ?
  • 77. Questions and answers John H. Rees Callister Nebeker & McCullough jhrees@cnmlaw.com 801.530.7388