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<title>Saas And Ecommerce Businesses -- Are You Liable For Failure To Bind Your Service Providers? Posted By: Chip Cooper</title>
<description>Copyright 2009 Chiup Cooper

If you've been following legal developments on the Web in the last couple of years, you know that there is significant concern regarding privacy and data security. This concern is driven by consumers' fears over identity theft.

The Life Is Good Case - 5 Data Security Safeguards

In a well-known case filed against Lifeisgood.com, the Federal Trade Commission (FTC) announced in a press release dated January 17, 2008, that Life Is Good agreed to implement the following 5 administrative, technical, and physical safeguards for data security:

1. Designate an employee or employees to coordinate the information security program.

2. Identify internal and external risks to the security and confidentiality of personal information and assess the safeguards already in place.

3. Design and implement safeguards to control the risks identified in the risk assessment and monitor their effectiveness.

4. Develop reasonable steps to select and oversee service providers that handle the personal information of customers.

5. Evaluate and adjust its information-security program to reflect the results of monitoring any material changes to the company's operations, or other circumstances that may impact the effectiveness of its security program.

FTC Recommendation No.<![CDATA[<a href="http://www.articlesnatch.com/topic/Chip+Cooper" rel="tag">Chip Cooper</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/online+contract+drafting+service" rel="tag">online contract drafting service</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+forms" rel="tag">legal forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+forms" rel="tag">contract forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+contracts" rel="tag">legal contracts</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/sample+contract+agreements" rel="tag">sample contract agreements</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+drafting+software" rel="tag">contract drafting software</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/SaaS+agr" rel="tag">SaaS agr</a>]]></description>
<category><![CDATA[Chip Cooper]]></category><category><![CDATA[online contract drafting service]]></category><category><![CDATA[legal forms]]></category><category><![CDATA[contract forms]]></category><category><![CDATA[legal contracts]]></category><category><![CDATA[sample contract agreements]]></category><category><![CDATA[contract drafting software]]></category><category><![CDATA[SaaS agr]]></category>
<link>http://www.articlesnatch.com/Article/Saas-And-Ecommerce-Businesses----Are-You-Liable-For-Failure-To-Bind-Your-Service-Providers-/561966</link>
<pubDate>Sun, 29 Mar 2009 00:00:00 -0400</pubDate>
<guid>http://www.articlesnatch.com/Article/Saas-And-Ecommerce-Businesses----Are-You-Liable-For-Failure-To-Bind-Your-Service-Providers-/561966</guid>
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<title>2 Tips To Avoid Costly Liability For Visitors&#039; Posts To Your Interactive Website Posted By: Chip Cooper</title>
<description>Copyright 2009 Chip Cooper

Many sites these days are interactive -- they permit site visitors to post to the site.

Forums and blogs would be at the top of most of our lists for types of interactive sites. However, different kinds of sites are also permitting owners to post, such as classified ad sites.

What happens if a visitor posts a defamatory statement '- or statements that are in violation of specific statutes -- on your blog, forum, or in a classified ad on your site? Are you liable?

The Communications Decency Act

Congress came to the rescue of "interactive computer services" in 1996 with subsection (c) of the Communications Decency Act which provides: "No provider or user of any interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider." 47 USCA Sec. 230(c) (referred to below as "Section 230"). Section 230 was intended to overrule prior case law which routinely held that online providers were liable as publishers and speakers for third party content. Now, under Section 230, interactive websites have a shield against liability for visitor's posts.<![CDATA[<a href="http://www.articlesnatch.com/topic/Chip+Cooper" rel="tag">Chip Cooper</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/online+contract+drafting+service" rel="tag">online contract drafting service</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+forms" rel="tag">legal forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+forms" rel="tag">contract forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+contracts" rel="tag">legal contracts</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/sample+contract+agreements" rel="tag">sample contract agreements</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+drafting+software" rel="tag">contract drafting software</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/SaaS+agr" rel="tag">SaaS agr</a>]]></description>
<category><![CDATA[Chip Cooper]]></category><category><![CDATA[online contract drafting service]]></category><category><![CDATA[legal forms]]></category><category><![CDATA[contract forms]]></category><category><![CDATA[legal contracts]]></category><category><![CDATA[sample contract agreements]]></category><category><![CDATA[contract drafting software]]></category><category><![CDATA[SaaS agr]]></category>
<link>http://www.articlesnatch.com/Article/2-Tips-To-Avoid-Costly-Liability-For-Visitors--Posts-To-Your-Interactive-Website/544896</link>
<pubDate>Sun, 15 Mar 2009 00:00:00 -0400</pubDate>
<guid>http://www.articlesnatch.com/Article/2-Tips-To-Avoid-Costly-Liability-For-Visitors--Posts-To-Your-Interactive-Website/544896</guid>
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<title>Is Your Saas Agreement Enforceable -- Even Against Simba, The Agreeable Cat? Posted By: Chip Cooper</title>
<description>Copyright 2009 Chip Cooper

I thought I'd seen and heard it all in my Internet law practice, until a client referred me to an interesting article about a kitty cat named Simba that walked across a keyboard and clicked on an online, click-through agreement (also known as a "click-wrapped" agreement). The article is entitled "The Agreeable Cat", by Ann Loucks, and you can read it at http://www.ohesso.com/essays/essay006.htm. 

My client wanted to know whether the agreement was enforceable. My reply - against Simba the cat, or its owner who put Simba up to this?

After a chuckle, I thought the question really had merit, and this is my analysis.

The Specht Case

The most significant case regarding the enforceability of online agreements is Specht v. Netscape Comms. Corp., a 2003 case in which the 2nd Circuit Court of Appeals upheld a district court decision that Netscape's online agreement was not enforceable. By holding that the agreement was unenforceable, the reasoning of the case provided specific guidelines for enforceability.

In the Specht case, Netscape's website developer designed its download page for Netscape's SmartDownload software with little regard for contract enforceability.<![CDATA[<a href="http://www.articlesnatch.com/topic/Chip+Cooper" rel="tag">Chip Cooper</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/online+contract+drafting+service" rel="tag">online contract drafting service</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+forms" rel="tag">legal forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+forms" rel="tag">contract forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+contracts" rel="tag">legal contracts</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/sample+contract+agreements" rel="tag">sample contract agreements</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+drafting+software" rel="tag">contract drafting software</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/SaaS+agr" rel="tag">SaaS agr</a>]]></description>
<category><![CDATA[Chip Cooper]]></category><category><![CDATA[online contract drafting service]]></category><category><![CDATA[legal forms]]></category><category><![CDATA[contract forms]]></category><category><![CDATA[legal contracts]]></category><category><![CDATA[sample contract agreements]]></category><category><![CDATA[contract drafting software]]></category><category><![CDATA[SaaS agr]]></category>
<link>http://www.articlesnatch.com/Article/Is-Your-Saas-Agreement-Enforceable----Even-Against-Simba--The-Agreeable-Cat-/540561</link>
<pubDate>Tue, 10 Mar 2009 00:00:00 -0400</pubDate>
<guid>http://www.articlesnatch.com/Article/Is-Your-Saas-Agreement-Enforceable----Even-Against-Simba--The-Agreeable-Cat-/540561</guid>
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<title>Ecommerce Websites -- 3 Tips To Avoid Liability For Actions Of Your Online Resellers Posted By: Chip Cooper</title>
<description>Copyright 2009 Chip Cooper

Recent case law confirms once again: if online agreements are presented properly to end-users, they're legally enforceable.

This continuing trend is good news for websites that contract with registered users though SaaS Agreements, Membership Agreements, Subscription Agreements, Terms of Sale, Content License Agreements, and the like.

Why? Among other things, this means that important legal disclaimers and limitations of liability are legally enforceable.

But what about liability exposure arising out of customer contracts entered into by your resellers? Are you liable for actions of your resellers?

The Direct Revenue Case

In the case of People v. Direct Revenue, the New York Attorney General in 2008 attempted to nail Direct Revenue for its distribution of software that served pop-up advertising software on consumers' computers.

Direct Revenue is in the advertising business. It's software client serves pop-up advertisements to consumer's computer screens through the Internet. Direct Revenue does not charge fees to consumers. Instead, it charges fees to the companies whose products it advertises.<![CDATA[<a href="http://www.articlesnatch.com/topic/Chip+Cooper" rel="tag">Chip Cooper</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/online+contract+drafting+service" rel="tag">online contract drafting service</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+forms" rel="tag">legal forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+forms" rel="tag">contract forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+contracts" rel="tag">legal contracts</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/sample+contract+agreements" rel="tag">sample contract agreements</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+drafting+software" rel="tag">contract drafting software</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/SaaS+agr" rel="tag">SaaS agr</a>]]></description>
<category><![CDATA[Chip Cooper]]></category><category><![CDATA[online contract drafting service]]></category><category><![CDATA[legal forms]]></category><category><![CDATA[contract forms]]></category><category><![CDATA[legal contracts]]></category><category><![CDATA[sample contract agreements]]></category><category><![CDATA[contract drafting software]]></category><category><![CDATA[SaaS agr]]></category>
<link>http://www.articlesnatch.com/Article/Ecommerce-Websites----3-Tips-To-Avoid-Liability-For-Actions-Of-Your-Online-Resellers/530042</link>
<pubDate>Sat, 28 Feb 2009 00:00:00 -0500</pubDate>
<guid>http://www.articlesnatch.com/Article/Ecommerce-Websites----3-Tips-To-Avoid-Liability-For-Actions-Of-Your-Online-Resellers/530042</guid>
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<title>3 Tips For Your General Audience Site To Avoid Tripping The Coppa Trap Posted By: Chip Cooper</title>
<description>Copyright 2009 Chip Cooper

If you think that the Children's Online Privacy Protection Act (COPPA) applies only to websites that target children under 13, you're uninformed. Sony found out the hard way, and as a result Sony has agreed to pay a $1 million fine in settlement of a case brought by the Federal Trade Commission (FTC). You can avoid falling into this trap with your general audience site if you follow 3 simple tips.

COPPA or COPA?

In January, 2009, the US Supreme Court refused to hear the government's appeal of a July, 2008 ruling by the 3rd Circuit Court of Appeals that the Child Online Protection Act of 1998 (COPA) was unconstitutional. This refusal by the US Supreme Court means that COPA is now unconstitutional -- once and for all.

COPA should not be confused with COPPA. COPA (now unconstitutional) imposed both civil and criminal penalties on commercial website operators that publish sexually explicit material without also using credit card authentication or other technological measures to verify viewer age and block access by minors.<![CDATA[<a href="http://www.articlesnatch.com/topic/Chip+Cooper" rel="tag">Chip Cooper</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/online+contract+drafting+service" rel="tag">online contract drafting service</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+forms" rel="tag">legal forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+forms" rel="tag">contract forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+contracts" rel="tag">legal contracts</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/sample+contract+agreements" rel="tag">sample contract agreements</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+drafting+software" rel="tag">contract drafting software</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/SaaS+agr" rel="tag">SaaS agr</a>]]></description>
<category><![CDATA[Chip Cooper]]></category><category><![CDATA[online contract drafting service]]></category><category><![CDATA[legal forms]]></category><category><![CDATA[contract forms]]></category><category><![CDATA[legal contracts]]></category><category><![CDATA[sample contract agreements]]></category><category><![CDATA[contract drafting software]]></category><category><![CDATA[SaaS agr]]></category>
<link>http://www.articlesnatch.com/Article/3-Tips-For-Your-General-Audience-Site-To-Avoid-Tripping-The-Coppa-Trap/522724</link>
<pubDate>Sun, 22 Feb 2009 00:00:00 -0500</pubDate>
<guid>http://www.articlesnatch.com/Article/3-Tips-For-Your-General-Audience-Site-To-Avoid-Tripping-The-Coppa-Trap/522724</guid>
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<title>Your Privacy Policy: Plan Ahead Or Your Opt-in And Customer Lists May Be In Jeopardy Posted By: Chip Cooper</title>
<description>Copyright  AND copy; 2009 Chip Cooper

I talk to clients all the time about not falling into the trap of believing that their privacy policy is really nothing but a lot of fluff, filled with vague, self-serving statements such as "we respect your privacy".

It's actually way more than that; it's viewed as an enforceable contract by the Federal Trade Commission (FTC), and as such it may be construed against you and subject you to substantial liability.

It's critical that you plan ahead... anticipate the future needs of your ecommerce business in terms of your marketing needs and related requirements of collecting, storing, and using information collected from site visitors. Failure to do so may jeopardize your most important assets -- your opt-in and customer lists.

The Toysmart Case

Toysmart was an online seller of children's toys. In 1999, Toysmart's privacy policy was explicit; it stated unequivocally that the company would not share personal information of customers with any third party. Later, unforeseen difficulties forced Toysmart into bankruptcy under Chapter 11. One of Toysmart's most valuable assets was its customer list and its associated personal information.<![CDATA[<a href="http://www.articlesnatch.com/topic/Chip+Cooper" rel="tag">Chip Cooper</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/online+contract+drafting+service" rel="tag">online contract drafting service</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+forms" rel="tag">legal forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+forms" rel="tag">contract forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+contracts" rel="tag">legal contracts</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/sample+contract+agreements" rel="tag">sample contract agreements</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+drafting+software" rel="tag">contract drafting software</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/SaaS+agr" rel="tag">SaaS agr</a>]]></description>
<category><![CDATA[Chip Cooper]]></category><category><![CDATA[online contract drafting service]]></category><category><![CDATA[legal forms]]></category><category><![CDATA[contract forms]]></category><category><![CDATA[legal contracts]]></category><category><![CDATA[sample contract agreements]]></category><category><![CDATA[contract drafting software]]></category><category><![CDATA[SaaS agr]]></category>
<link>http://www.articlesnatch.com/Article/Your-Privacy-Policy--Plan-Ahead-Or-Your-Opt-in-And-Customer-Lists-May-Be-In-Jeopardy/508992</link>
<pubDate>Tue, 10 Feb 2009 00:00:00 -0500</pubDate>
<guid>http://www.articlesnatch.com/Article/Your-Privacy-Policy--Plan-Ahead-Or-Your-Opt-in-And-Customer-Lists-May-Be-In-Jeopardy/508992</guid>
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<title>Use Of A Competitor&#039;s Mark In Keyword-triggered Ads - Legal Summary As We Begin 2009 Posted By: Chip Cooper</title>
<description>Copyright  AND copy; 2009 Chip Cooper

In the last four years or so, cases involving keyword-triggered ads have been hotly litigated. As we begin 2009, it's a good time to look back to see if the law has settled a bit.

The stakes regarding keyword-triggered ads are high-both for trademark owners and their competitors alike, and also for search engines. Companies spend significant sums on Internet advertising -- sums that routinely surpass even optimistic projections.

Google Modifies Keyword Policy in 2004

In 2004, Google modified its policy to allow advertisers to bid on any keyword, even keywords that are trademarks of a competitor. Not long after this change of policy, the pace of litigation involving keyword-triggered ads increased rapidly.

For purposes of this article, we'll consider keyword ads that work in 2 ways (either way, the intended effect is to provide the competitor of a trademark owner a competitive advantage):

* by triggering a pop-up ad, and

* by arrangement and prioritizing search engine results.

Let's see what happens if a competitor of Nike purchases "Nike" as a keyword for a search engine.<![CDATA[<a href="http://www.articlesnatch.com/topic/Chip+Cooper" rel="tag">Chip Cooper</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/online+contract+drafting+service" rel="tag">online contract drafting service</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+forms" rel="tag">legal forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+forms" rel="tag">contract forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+contracts" rel="tag">legal contracts</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/sample+contract+agreements" rel="tag">sample contract agreements</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+drafting+software" rel="tag">contract drafting software</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/SaaS+agr" rel="tag">SaaS agr</a>]]></description>
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<link>http://www.articlesnatch.com/Article/Use-Of-A-Competitor-s-Mark-In-Keyword-triggered-Ads---Legal-Summary-As-We-Begin-2009/492829</link>
<pubDate>Mon, 26 Jan 2009 00:00:00 -0500</pubDate>
<guid>http://www.articlesnatch.com/Article/Use-Of-A-Competitor-s-Mark-In-Keyword-triggered-Ads---Legal-Summary-As-We-Begin-2009/492829</guid>
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<title>2009 Resolution -- Give Your Site A 10-point Legal Check-up Posted By: Chip Cooper</title>
<description>It's early in the year, and it's time to fulfill your resolution to give your site a quick legal check-up.

Online businesses are now highly regulated, and there's substantial liability if you site's not legally compliant. In addition, your customers are becoming more Internet savvy, and a site that's not legally compliant is not going to be trusted.

So, let's get started.

Use This Checklist If You Already Have The Basic Site Documents In Place

1. Copyright Notice. Check Your Copyright Notice. Your copyright notice consists of the following elements: the word "copyright" or copyright symbol (c in a circle) followed by the year of first publication followed by the name of the copyright owner. It's also a good idea to add "All rights reserved worldwide". Example: Copyright 1996-09 Digital Contracts, Inc. All rights reserved worldwide. Note that if you update your site from time to time, you should add a date range reflecting the fact that the site has been updated each year within the date range. If you haven't updated yet for 2009, do it now.

2. Blogs, etc.<![CDATA[<a href="http://www.articlesnatch.com/topic/Chip+Cooper" rel="tag">Chip Cooper</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/online+contract+drafting+service" rel="tag">online contract drafting service</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+forms" rel="tag">legal forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+forms" rel="tag">contract forms</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/legal+contracts" rel="tag">legal contracts</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/sample+contract+agreements" rel="tag">sample contract agreements</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/contract+drafting+software" rel="tag">contract drafting software</a>]]> <![CDATA[<a href="http://www.articlesnatch.com/topic/SaaS+agr" rel="tag">SaaS agr</a>]]></description>
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<link>http://www.articlesnatch.com/Article/2009-Resolution----Give-Your-Site-A-10-point-Legal-Check-up/479897</link>
<pubDate>Wed, 14 Jan 2009 00:00:00 -0500</pubDate>
<guid>http://www.articlesnatch.com/Article/2009-Resolution----Give-Your-Site-A-10-point-Legal-Check-up/479897</guid>
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