Social networking has grown significantly in recent years and covers a broad range of online sites used by people of all ages, says Peter Berk, an attorney with McDonald Hopkins LLC.
“From LinkedIn to Facebook to MySpace to FourSquare to Twitter to other online sites that let people connect with others in their business fields, networks or friend circles, social networking has exploded as a new world of communication,” says Berk. “With that ability comes benefits and risks.”
Smart Business spoke with Berk about social networking and how to protect yourself — and your brand — while online.
What legal issues do companies face in the social networking area?
Social networking has become both a boon and a burden for businesses. The marketing potential of social networking sites is continuously being explored and advanced by businesses on the cutting edge of this technology. But there are legal issues surrounding a business’s use of social networking, and a business’s rights can be more easily infringed upon through social networking.
For example, social networking has allowed disgruntled employees, upset customers and others to attack companies and their brands online. The structure of social networking and the Internet makes it easier and less costly to send an anonymous, disparaging message to hundreds or thousands of people in the blink of an eye, with little ability for the business to effectively respond.
Intellectual property issues, such as those involving trademarks and copyrights, can also be problematic on social networking sites. The structure of such sites makes it easy for companies to promote their brands and their copyrighted material. But such technology, if not dealt with appropriately, can also make it easier for others to steal copyrighted material or copy and misuse trademarks, harming the company’s brand. Social networking creates a whole new world for businesses to police when it comes to their intellectual property.
Filing a lawsuit in such circumstances may not be the best answer as it can lead to unexpected results. For example, a person or entity that has defamed a company, infringed its intellectual property or otherwise harmed it through social networking can wage a very public battle with the company through social networking during the lawsuit. Therefore, before filing a suit, or even threatening one, confer with your leaders and legal advisers to determine the best strategy for protecting the company’s rights and its image.
