Tag: VenJuris

  • Choosing a Business Entity

    "Leap" by Sabrina C from Flickr (Creative Commons License)
    “Leap” by Sabrina C from Flickr (Creative Commons License)

    Just like you wouldn’t ask your plumber to change your car’s oil, don’t ask a lawyer what type of business entity you need. Ask your accountant.

    What your Accountant Can Do
    Anyone with access to their state corporation commission website can see the different types of corporations and limited liability organizations are available where they live. Determining which one is the ideal for your situation is best left to your accountant, an accountant who does business accounting. The tax code is too complex and has too many changes year-to-year for a regular person to navigate on their own. Get yourself an accountant which whom you can have a candid discussion about your current financial situation and your future plans, so they can tell you what’s the right business entity for you. What’s right for your friend, may not be the best plan of action for you.

    And I’ve always said, a good accountant is worth their weight in gold. I’m happy to pay my accountant’s bill because handles the tax side of my business for me and he always answers my random questions.

    How a Lawyer Can Help
    A business lawyer can describe the differences between the types of corporations and LLCs, what it costs to file the documents in the state to start an entity, whether an annual report is required, and other legal obligations and suggestions accompany different business entities. If you have a limited budget, filing your documents with your state by yourself is one way to save on legal fees. If you can afford it, and you don’t want to take the time to do it yourself, you can hire a lawyer to do your filing for you and take care of the require publication.

    Your lawyer can also create the documents that accompany the creation of a new business – bylaws, operating agreement, terms of service, and/or contract templates. They can also advise you about how to protect your intellectual property and the importance of maintaining your corporate veil. Even if you don’t need a lawyer to create your business entity, it’s pragmatic to bring your lawyer into the loop sooner than later, just to make sure you have your ducks in a row.

    Being a business owner and running the business are two full-time jobs in one. As an entrepreneur, I sympathize with what my clients go through with the challenges of providing for their customers and managing the nuts and bolts of being a business owner. If you want to connect with me and my experience as a business owner, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • FTC Compliance Friendly Reminders

    Praise by bark from Flickr (Creative Commons License)
    Praise by bark from Flickr (Creative Commons License)

    Bloggers, vloggers, and other social influencers frequently asked me about the rules regarding disclosure when partnering with companies and using affiliate links. With holidays (and therefore holiday gift guides) on the horizon, it seemed apropos to share some helpful reminder for how to comply with the FTC’s disclosure rules when you get free product or are compensated for providing a review.

    It’s All About Transparency
    The purpose of the FTC’s disclosure rules is transparency. When people consume content, they have a right to know whether the creator has a relationship with the company or product or whether it is 100% their independent opinion. Knowing that a person has a relationship with a company, which may or may not include financial compensation, will impact whether a person reads or view a post and how much weight or credibility to give it.

    To comply with the transparency requirements of Federal law, social influencers must clearly and prominently label the content they were compensated to make as advertising to avoid misleading consumers.

    Disclosure First
    Many influencers put their notice that they were compensated for doing a post or that a post has affiliate links at the end of the content. This is likely insufficient to comply with the rules because consumers need to be informed before they form an opinion about a product that they’re reading a sponsored post or an ad.

    In general, you should make a disclosure in the post itself and shortly before the reader receives the advertising message. The FTC recommends putting it in front of or above the ad’s headline. Additionally, the notice need to be clear and unambiguous language. To determine whether your disclosure complies with the FTC, consider your notice from the perspective of the reasonable consumer who’s seeing your content for the first time. Will he/she notice the disclosure statement and understand that they’re reading or seeing an ad?

    The FTC says terms like “ad,” “advertisement,” or “sponsored advertising content” are likely to be understood but terms like “promoted,” or “sponsored by [XYZ]” don’t comply with the disclosure requirement because they could be interpreted as merely underwriting the content without influencing the statements made in it.

    So what does this mean? If you write a review of a product that you got for free or got paid for writing the post about it, you have to disclose at the top of the post that you have a relationship with the company. If you use affiliate links, you have to clearly disclose those relationships as well, prior to posting the link. (In some circumstances, using the term “affiliate link” may be insufficient if the average consumer doesn’t know the difference between links and affiliate links. Yes, this happens – I recently attend a blogging conference where an attendee assumed that the terms “link” and “affiliate link” were interchangeable.)

    Every Post, Every Platform
    When you have a relationship with a company or are compensated for writing about a product, you have to disclose it to your audience every time you write about it – regardless of the platform it’s on or what device people use to access it. Every single time. (Yes, I know this is annoying, but it’s what the FTC requires.)

    Disclosure is Everyone’s Responsibility
    Everyone who is involved in the creation or distribution of native advertising should review the content to ensure that the required disclosure is present and that the material does not mislead the audience about the product or the relationship between the writer and the company. This includes middle men like ad agencies. If anyone is found to be in violation of the FTC rules about native advertising, they could be fined by the FTC – the company that created the product or service, the writer, and anyone in between who was involved – up to $16,000. That’s a stiff penalty for forgetting or refusing to disclose a relationship.

    If you want to learn more about this topic, I recommend the FTC’s article, Native Advertising: A Guide for Businesses. If you want to chat with me about these issues, like how to incorporate these requirements into website terms of service or contracts with third party content creators, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • Someone Posted a Photo of Me Online Without Consent

    Photographer by Robert Cooke from Flickr (Creative Commons License)
    Photographer by Robert Cooke from Flickr (Creative Commons License)

    People come to this site almost every day with questions about whether someone can post their picture on the internet without obtaining consent. Some people even ask if it’s a crime or whether they can sue.

    Sue for what? Which of your rights have been violated?

    Of course, each situation must be evaluated on its merits. It’s possible that a person is concerned with an intimate photo, a photograph that was taken in a bathroom, or circumstances where they are being harassed. I’m not saying that there aren’t situations where a person’s rights may have been violated; however, the frequency with which I get these questions makes me wonder whether most of these people have a legitimate legal concern or merely hurt feelings.

    No Expectation of Privacy in Public
    Remember, in the U.S., there is no expectation of privacy in anything you do in public (exceptions of course for places like bathrooms, confessionals, etc.). So, if someone snaps a photo of you that is less than flattering, and they post it on the internet, as long as they are not violating your rights, there’s nothing you can do about it.

    Maybe they took a photo of you not putting your shopping cart away, walking around with your skirt tucked into your underwear, or texting while driving. I think there are much more important things to talk about in general and definitely that are worth of documenting permanently online; however, it’s not illegal. Just like it is not illegal to be stupid, it is not illegal to post stupid things online. The internet is full of stupid.

    So What Do You Do?
    Well, if you truly believe that you’ve been the victim of a crime or that your rights have been violated, contact the police or buy an hour with a lawyer to review your situation. You may be in a situation where your legal rights have not been violated but the posting itself and violates the terms that apply to the site where it was published. In that case, reporting the image to the website administrators may be sufficient to get it removed.

    If it is purely a situation where you are merely angry or upset, and the person won’t remove the image when asked, let it go. If you’re embarrassed by your behavior, don’t do it again. If you’re in a situation where the image shows up if someone Googles your name, you can try to bury it by manipulating the search algorithm. Hopefully it’s not a situation where you screwed up so badly that the image or situation is going to dominate the search results for years to come.

    On the Flip Side
    If you’re thinking about snapping a picture of someone, check your motives. If you’ve taken a picture and you have the impulse to share it online, double and triple check your motives. What are the benefits of sharing this image? Are you being vindictive? If the situation were reversed, would you want an image of you in a similar situation posted? What if the person in the picture was your parent or significant other – would you post it then?

    The person in the photo isn’t the only one at risk of losing face. Do you want to be the jerk who not only took this photo, but also shared it? You could harm yourself as well as the other person.

    What is socially inappropriate and what is illegal are often two drastically different standards. My rule of thumb for this situations is the same: Think before you act. Think before you post. If you want to talk more about internet privacy or social media law, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • What’s Up with YouTube Pulling Ads from Videos?

    Speak No Evil by Robert Young from Flickr (Creative Commons License)
    Speak No Evil by Robert Young from Flickr (Creative Commons License)

    In the last week, several people have posted that YouTube pulled the ads from their videos because their content wasn’t “advertiser-friendly.”

    What’s Advertiser-Friendly Content?
    According to YouTube policies, ads can only be run on content that’s all-ages appropriate. “It has little to no inappropriate or mature content in the video stream, thumbnail, or metadata (such as in the video title). If the video does contain inappropriate content, the context is usually newsworthy or comedic and the creator’s intent is to inform or entertain (not offend or shock).”

    According to YouTube, you can’t run ads against content that contains the following:

    • Sexually suggestive content;
    • Violence
    • Profanity or vulgar language
    • Harassment
    • Promotion of drugs
    • Sensitive subjects – including, war, political conflicts, natural disasters, and tragedies

    If a user repeatedly posts videos that violate this policy, YouTube may suspend monetization on your whole channel. This could be problematic for content creators who make a living in part from their YouTube channel(s).

    Their Site, Their Rules
    Reading the YouTube rules, it’s ok to create and post content that violates some of its advertiser-friendly guidelines, but not make money from it.

    And don’t even think about trying to argue that YouTube is violating your First Amendment right to free speech. It’s their site so they make the rules. They’re not stopping you from creating and publishing content on your own forum, just setting the rules for their platform.

    Compare this to a shopping mall. They control who can sell wares and what behavior is appropriate. If you break the rules – by screaming or walking a body bag through the food court (not that I’ve done that) – you can be asked to leave or even banned for a period of time. Likewise, if you scream obscenities on the street, the police might be called and you could get a ticket for disturbing the peace.

    So, What’s Changed?
    It appears that not much has changed on YouTube. The policy regarding advertiser-friendly content hasn’t changed, but rather how it’s enforced. Before, if a video violated this rule, they would merely turn off the monetization feature, and you may not notice the difference unless you checked your Video Manager. Now, YouTube is sending an email notice when they turn off monetization.

    I went back and reviewed the law firm’s YouTube channel. I run ads on most videos, but I haven’t made a cent from YouTube. There’s only one video on which monetization was turned off. My other videos where I may occasionally swear and/or mention sexual content like “revenge porn” are still monetized. (Not that I expect to make money from my videos, but you never know.)

    If you have an internet-based business that relies on another platform to make money, be sure you read the site’s terms of service before you design your business model around it. (Remember, there’s a good chance the site can change the rules at any time.) If you want to talk more about internet or social media law, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • Turnabout is Fair Play – Getty Sued for $1B for Copyright Violations

    The Trees are Laughing at Us by daspunkt from Flickr (Creative Commons License)
    The Trees are Laughing at Us by daspunkt from Flickr (Creative Commons License)

    Getty Images is known for sending letters to people suspected of using their images without purchasing a license. These demand letters essentially say, “By using our image, you’ve agreed to pay for a license. Pay $XXX by this date or we will sue you.”

    They may have started the trend of other photographers sending similar demand letters when people use their images without permission. (I’ve sent these type of letters and counseled clients who have received them – usually from pulling images from a Google Image search without verifying that they had permission to use it.)

    Getty sent such a letter to documentary photographer Carol Highsmith, claiming that she was violating their terms for using an image. Here’s the catch – it was a photograph that Highsmith took herself and previously shared with the Library of Congress to allow free use of her work by the general public. Highsmith has shared tens of thousands of images with the public through the Library of Congress since 1988.

    Highsmith learned that Getty is claiming copyright rights to thousands of her images work and demanding payment for licenses, often without attribution to her, and adding “false watermarks” to the images. She filed a $1,000,000,000 (that’s $1B with a “B”) copyright infringement lawsuit against these agencies for the “gross misuse” of 18,755 of her photographs.

    That’s a lot of photographs.
    I hope they have good insurance.

    But $1B?! Really?!
    Actually, yes. In this case, suing for $1B makes perfect sense.

    A party who adds or removes a watermark from a photo to avoid detection for copyright infringement can be fined up to $25,000 per image in addition to other financial damages for copyright infringement.
    $25,000/image x 18,755 images = $468,875,000

    And if a party is found to have violated this law in the last three years – which Getty has – the complaining party can ask for triple the damages.
    $468,875,000 x 3 = $1,406,625,000

    Looking at this, it’s easy to see how easy it is for Highsmith to reasonably request over $1B in damages. She’s also requested a permanent injunction to prohibit future use of images by Getty and the other Defendants and attorneys’ fees.

    You can read the full complaint filed by Highsmith against Getty in New York Federal Court here.
    So far, Getty claims they will defend themselves “vigorously.”

    This could be a fun case to watch. If this case doesn’t go to trial (and most cases don’t), I hope the settlement isn’t kept completely secret behind a non-disclosure agreement. One of the recommendations I make to anyone who is a professional creative is determine in advance how you want to respond when your work is used without your permission and plan accordingly. For many people, it’s not if their work is stolen, but when.

    There are a lot of issues that come into play surrounding photography, image rights, and copyright. If you want to chat more about these topics, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

    EDIT: The previous version of this post stated that Highsmith released her work to public domain. My apologies. Highsmith retains the copyright in her work, but allows others to freely use it through the Library of Congress.

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    Ruth Carter

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  • Typical Sex Video Email Conversation

    What Are You Looking At by nolifebeforecoffee from Flickr (Creative Commons License)
    What Are You Looking At by nolifebeforecoffee from Flickr (Creative Commons License)

    I regularly receive emails from people asking questions about the legalities related to intimate photos and videos – particularly situations when a third party has possession of them. Sometimes the third party allegedly obtained them nefariously and sometimes the people emailing me voluntarily sent the person photos or video and now they have concerns about what said person will do with them.

    Now they have concerns?! These are questions they should have asked themselves before they sent the photos/video to begin with!

    Here’s an example of how these conversations typically go. The text in italics are things I usually think, but don’t share with the other the person in the moment.

    Prospective Client (PC): I made a video with my boyfriend and his ex got a hold of it. His ex is threatening to send it to my parents and post it. What can I do about this?

    How did his ex get access to your sex video? This sounds like someone neither of you should have contact with.

    ME: How old are you?

    Please don’t be a child . . . please don’t be a child . . . please don’t be a child . . . (Yes, sometimes it’s a minor – or so they say.)

    PC: 24.

    ME: Thank goodness this isn’t a potential inadvertent kiddie porn situation.

    You’re an adult. Besides being embarrassing, who cares if this person shows the video to your parents? (I’ve also had people email me claiming the third party is threatening to send it to the PC’s employer.)

    ME: Where do you and the ex live?

    In Arizona, merely threatening to post revenge porn is a felony.

    PC: Nebraska.

    Ok, well that’s outside the limits of my law license and revenge porn legal knowledge.

    ME: Here’s the list of the current revenge porn and related laws in all 50 States. This will tell you how the laws in your State apply to these situations.

    PC: I don’t know what to do. I want to go to the police but I don’t know if I can do that.

    ME: Of course you can go to the police! Give them a call, explain your situation, and ask if there’s anything they can do to help you. They may be the best ones to know if this situation violates your State’s criminal law.

    And maybe some local resources too that help people in these types of situations.

    I get questions and hits on my site every day from people asking about intimate photos and videos, not all of which were taken with consent, and how to keep them from getting out. Unfortunately, I also get hits from people who want to post revenge porn without repercussions – which is disgusting.

    When in doubt – don’t. Don’t create intimate photos or videos, don’t share them with others, and don’t post them online. What seemed like a good idea in the moment, may create long lasting regret, especially if it shows up when someone Googles your name. However, if you choose to create this type of material, do it with your device, keep it under password, and never let the files out of your control. Once this material is released, it’s hard to get it back or verify that every copy has been destroyed.

    We’re still in the infancy of how we’re going to deal with intimate photos and videos from a social and legal perspective. If you want to chat with me about revenge porn, privacy, or any related topics, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here. If you think you’re the victim of revenge porn or threatened revenge porn, contact your local law enforcement agency.

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    Ruth Carter

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  • Where to Put “#ad” on Instagram Posts

    Free StuffLast month, Rosie and I attended BlogPaws – a conference for pet bloggers – where I taught a workshop with Chloe DiVita and Tom Collins on the Legal Dos and Don’ts of Blogging and Social Media.  We did a three-hour presentation that focused on copyright and the federal rules that apply to product reviews, campaigns, and promotions.

    We reminded the audience that the Federal Trade Commission (FTC) requires people to provide their honest and accurate opinions when writing product reviews. If you have a relationship with a company – whether you got free product, you have a contract with them, or even if you have personal relationship with someone in the company, you always have to disclose these relationships – clearly and succinctly – in every post and platform you mention them. We also reviewed the Lord & Taylor fiasco. This was a good reminder for social media influencers not to assume the companies they work with will know these rules or provide proper guidance

    After the workshop, I did one-on-one sessions with attendees. Per the conference organizers, each person only got 10-minutes, so it was like a legal information kissing booth – sit down, ask one question, and get out. One attendee asked, “I understand that I have to put #ad on all Instagram posts when I have a relationship with a company, but are there rules about where I have to put it?”

    Hmm . . . that’s an interesting question, and one I’ve never heard before.

    Rosie and I were happily the most underdressed on the BlogPaws red carpet. (Photo by Silver Paw Studio, used with permission)
    Rosie and I were happily the most underdressed on the BlogPaws red carpet. (Photo by Silver Paw Studio, used with permission)

    The purpose of the FTC rules is transparency. The law requires posters to inform others of potential bias due to a relationship with company so whomever reads the post can consider this in conjunction with the content of the post. This disclosure must be clear and conspicuous,  you can’t put it behind a link. The easiest way to make this disclosure is to include “#ad” on each applicable post.

    I grabbed my phone and scrolled through my Instagram feed. Each post cuts off after the first three lines until you click on it to read more. Based on this, it appears the prudent place to put “#ad” on an Instagram post is to put it in the first three lines so anyone looking at their feed on their will know when you have a relationship with a company.

    After the conference, I looked at Instagram’s Terms of Use. Although their terms are impressive and thorough, there are currently no provisions explicitly about when and where to use “#ad.”

    The law is constantly trying to keep up with technology, including the internet. If you’re a social media influencer, keep up with changes in the FTC rules regarding disclosures on product reviews and promotions. and other rules that apply to your posts. If you have questions about internet law, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

    Hat tip to Rosalyn of Golden Woofs and Sugar the Golden Retriever for this question.

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    Ruth Carter

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  • Creeper Cosplay Video | Is That Legal

    Gradisca Cosplay Photo Contest 2014 by chripell from Flickr (Creative Commons License)
    Gradisca Cosplay Photo Contest 2014 by chripell from Flickr (Creative Commons License)

    A contact at Phoenix Comicon sent me a link to an amateur video from this year’s event. Apparently it’s fueled quite a bit of discussion regarding the legalities of shooting video at pay-to-attend events.

    My initial thoughts about this video: It’s creepy.
    This guy knowingly and intentionally videorecorded women without their consent and posted the compilation online in a way that objectifies them. It’s all about their bodies. Did you notice he taped at least one woman while she was walking away from the bathroom? Eww! And what’s with that disturbing music with women crying on it? This guy is right up there with creepy yellow coat man from the 2010 No Pants Light Rail Ride.

    What made this video so disturbing? Greg Benson of Mediocre Films does videos of women in cosplay at San Diego Comic-Con and I’ve never had an issue with it. I watched one of his videos from last year for comparison:

    I don’t have an issue with this video for several reasons:

    • He obviously gets consent from the women to film them. There’s no hidden agenda.
    • He interacts with these women. Even when he’s enjoying the beauty around him, Greg treats these women like people, not a peep show.
    • The video has a dual purpose – one of which is showcasing these stunning costumes. (Hey Greg – if you do another video like this, would you please call it “Women of Comic Con” instead of “girls?” It’s a better embodiment of these women’s badassery.)

    So is Creeper Guy’s video from Phoenix Comicon illegal?
    Probably not – at least based on the footage posted. It’s not illegal to be a jerk.
    If he had a ticket to the event, he wasn’t trespassing. The polite thing to do at a con is to ask permission before taking photos of attendees, but it’s not required.  He could have been a guy walking around looking like he was shooting general footage of the event, which lots of people do.

    So far he’s not running ads on the video in question, so he’s not publicizing anyone’s image without permission. Phoenix Comicon is an event that’s open to the public to attend so there’s no expectation of privacy on the expo floor.

    Is what this guy did vile? Yes.
    Should he be banned from future Phoenix Comicon events? Perhaps, but that’s not my call to make. With a crowd of over 80,000 in attendance, it would be easy for someone to slip in.

    However, instead of dealing with this situation from purely a legal perspective, I encourage the community to be aware of creepers at events like Phoenix Comicon. If you see someone leering at others or doing vulgar things like filming people’s asses as they walk, call them out and/or report them to event security. If you see someone being harassed, report that too and support that person. We have an obligation to keep an eye on each other.

    There’s nothing wrong with enjoying the view, as long as you can do it appropriately. Remember, cosplay is not consent.

    This is an issue impacting the entire geek/con community. If you believe you are the victim of a crime at a con, contact law enforcement for assistance. If you have questions about social media law or internet privacy that you want to discuss with me, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • Starting a Comic Book – What Does it Cost?

    Atom vs. Ant-Man (334/365) by JD Hancock from Flickr (Creative Commons License)
    Atom vs. Ant-Man (334/365) by JD Hancock from Flickr (Creative Commons License)

    I had the privilege of doing two panels at Phoenix Comicon this year: Fan Art/Fiction and Fair Use and Comic Book Creator Rights. The latter was a panel with writer/artist Josh Blaylock. He has experience licensing others’ work and creating his own.

    Someone in the audience asked us how much a person should set aside to cover legal fees when starting a comic book.

    Create Quality First
    If your goal is to create a comic book and possibly a business from it, start by working on your craft. You won’t have any legal issues if no one cares what you’re making.

    Start with a Consultation
    When you’re ready to take your work from a hobby to a professional endeavor, schedule a consultation with a lawyer. Choose someone with experience in entrepreneurship and intellectual property – business formation, copyright, contracts, and trademarks. You need someone who can help you understand when you need a lawyer. Expect to pay $200-350/hour for a lawyer’s time, more depending on where you live and the person’s experience level.

    It doesn’t cost much to get started with a new venture, but you do want to be thoughtful about what you can afford and act accordingly. A good lawyer will respect your budget and tell you what you can do on your own, and when it’s imperative to hire a lawyer. For instance, in many states, it’s easy to file your own business entity. Check with your state’s corporation commission for instructions and the forms. In Arizona, you can file an LLC and complete the requisite publication for less than $100.

    Nuts and Bolts information by Josh Blaylock
    Nuts and Bolts information by Josh Blaylock

    Protect your Intellectual Property
    The most valuable asset in your work is your intellectual property. Before you fall in love with a name for your comic book, run a search on the USPTO trademark database to verify that someone else hasn’t claimed the same or a similar name. Even if you can’t afford the $225-325 filing fee to register your trademark at first, you can put a superscript “TM” next to your work’s name, logo, and anything else you claim as a trademark. The USPTO has videos about how to submit a trademark application if you want to try to file your own, but I usually recommend that clients have a lawyer shepherd their application through the process. If you want to do this, expect to pay an additional $1,000 for their time.

    In regards to copyright, I tell my clients, it’s not if your work gets stolen, but when so plan accordingly. For a new comic book creator, my recommendation is to register each edition with the U.S. Copyright Office. Their website is not the most user-friendly experience, but you can hire a lawyer for an hour to walk you through your first registration and then you can submit your subsequent copyright applications by yourself. The filing fee for a single work is $35-55.

    Manage Relationships with Contracts
    Every relationship related to your business should be documented with a written signed contract. This applies to co-owners of your business, writers, artists, colorists, licensors, licensees, vendors, and if your comic book turns into a job offer, your employment contract. Contracts are relationship-management documents. They keep everyone on the same page in regards to expectations, compensation, ownership, and they provide a course of action if there is ever a dispute. A contract is an investment and worth the cost to hire a competent lawyer to write or review your document to ensure it is effective for your needs.

    Additionally, every entrepreneur should watch the video Fuck You, Pay Me, featuring Mike Monteiro and Gabe Levine. They have excellent advice for all entrepreneurs, especially those who work in creative services.

    If you want more information about the nuts and bolts of starting a comic book, check out Josh Blaylock’s book How to Self-Publish Comics: Not Just Create Them. If you want more information about the legalities of starting a business or working in the creative arts, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that’s shared only with my mailing list, by subscribing to the firm’s newsletter.

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    Ruth Carter

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  • Checklist for Social Media Influencers

    Selfie Stick by R4vi from Flickr (Creative Commons License)
    Selfie Stick by R4vi from Flickr (Creative Commons License)

    Some people, including a lot of average joes, have such a strong social media following that brands want to send them free products to review or to partner with them for a native advertising campaign. If you are lucky enough to get such an offer, you need to understand the rules and read the fine print closely to make sure you’re not setting yourself up to be accused of an FTC violation. Don’t count on the other side to educate you. As we saw in the Lord &Taylor situation, companies who seek to partner with social media influencers don’t always know and follow the rules themselves.

    If I were presented with an offer to do a product review or be part of a native advertising campaign, these are some of the questions I would ask in regards to the offer.

    Influencer-Company Relationship
    What is the company asking me to do?
    What is the company giving me in return?
    Is there fair give-and-take between both sides? (If not, it’s not a valid contract.)
    Are expectations and deadlines clear?
    Who is my point person at the company if I have any questions?

    FTC Compliance
    Does the offer require that my review be truthful?
    Does the offer require me to give an accurate review of the product? (Bonus points for companies that require reviewers to write what they like and dislike about the product.)
    Does the offer require that me to disclose my relationship with the company – both in my review itself and also any promotions I do about the content on social media (i.e., use #ad or #sponsored)? (The FTC requires this so if the company doesn’t want you to do this, turn and run. They don’t know the basic rules about native advertising.)

    Intellectual Property
    Does the offer clearly state who owns the copyright in what I create under the agreement?
    By accepting the offer, do I grant the company certain rights to use my work?

    General Legal Provisions
    Is there a written contract? (It’s avoids confusion when all the provisions are in a single document and has  provision that states, all the terms of this agreement are in this contract.)
    Is there a severability clause so if one provision is illegal, the rest of the contract remains in place?
    What are the rules for modifying the agreement?
    Which state law governs the agreement?
    If there’s a problem between the company and me, how will we resolve it?
    Under what circumstances will the agreement be terminated?

    Final Words of Wisdom
    Contracts are relationship-management documents, ideally written to protect both sides. If a company offers me a contract with provisions I dislike, I request changes. (I’m the queen of changing liability waivers.)

    And if there’s a word or provision you don’t apprehend, ask! Don’t sign a contract that you don’t understand, because as long as it’s legal, you’re stuck with it.

    If you are a serious influencer and get offers to do product reviews or participate in campaigns, treat your social media activities like a business. Consider hiring a lawyer to create a contract template for these situations when the other side doesn’t have a written contract. At the least, use this checklist to do a preliminary review of the offers you receive.

    If you want more information about the legal rules regarding your blog and social media, please check out The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed. If you want to chat with me about social media law, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that’s shared only with my mailing list, by subscribing to the firm’s newsletter.

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    Ruth Carter

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