Overview of eCommerce and Internet Business Law
Each year a larger percentage of business is conducted over the web, and today’s online companies face a multitude of legal issues related to their online presence, and as they conduct business over the Internet. These unique and novel issues have given rise to the emerging legal field of eCommerce and Internet Business law.
What is eCommerce and Internet Business Law?
Internet Business law relates to those unique legal issues and challenges presented by all companies with any sort of web presence, including issues relating to their company website, blogs, social media, and related agreements with designers, web and software developers, web hosts and advertisers.
While all companies with any sort of web presence should address Internet business legal issues, eCommerce companies have additional legal issues to identify and address. eCommerce companies are those companies who not only have a web presence, but also buy and sell products or services over the web. The added elements of commercial transactions, such as payment and delivery terms, warranties, etc., are in addition to the Internet Business law issues described above.
eCommerce and Internet Business law combines traditional legal areas of intellectual property law (patent, trade secret, trademark, and copyright), business and commercial transactions law, and regulatory law. In addition, however, the unique and mercurial nature of business conducted on and over the web presents unique challenges not addressed by traditional law firm practice groups. Thus, while the core of eCommerce and Internet Business law involves a blending of traditional legal practices, the combination of these issues and areas, as well as the unique challenges presented by the global reach of the Internet, make eCommerce and Internet Business law its own legal sub-specialty.
Common eCommerce and Internet Business Law Issues
eCommerce and Internet Business law encompasses a myriad of legal issues and matters, many of which relate to specific types of industries or business activities. Below is a list of some of the more common matters that companies with an online presence must address:
Common Internet Business matters include:
Domain name registration and transactions
Domain recovery actions and domain name disputes
Privacy and publicity issues
Unfair competition and false advertising issues
Online advertising practices
Metatag use
Keywords and Google® AdWords®
ICANN proceedings (including those under the UDRP)
Online marketing
Online privacy and terms of use policies
Social media policy
Anti-spam policy
External links policy/agreements
Disclaimers
Copyright retention
Trademark usage policies
Common eCommerce matters include:
Compliance with COPA and other laws affecting eCommerce
Issues associated with website development/hosting and copyright ownership
Trademark and brand issues online
eCommerce businesses and projects
Trade secrets and online business practices
Linking agreements
General eCommerce law and Internet laws
Patent issues related to eCommerce
Click-through agreements
Database protection
Electronic signatures/verification
Website membership agreement
Compliance with federal and state consumer protection laws
Information licensing
Refund & returns policy
Export controls and other trade regulations
Warranties and Limits of Liability
Other online contracting issues
In addition to the above-referenced types of matters, there are a number of “offline” legal issues involved in eCommerce and Internet Business law, such as:
Outsourcing agreements
Search Engine Optimization (SEO) agreements
“Software as a Service” agreements
Copywriting agreements (e.g., web content, blogs, etc.)
Website design/development agreement
Joint venture/joint marketing and “affiliate” agreements
Technology transfers
Web hosting agreements
Listing agreements
Hosting terms of service
Website sales and lease agreements
Nondisclosure Agreement/Confidentiality Agreements
Special Issues
The universality and anonymity of the Internet requires online companies deal with a number of special issues beyond those faced in the offline world, such as the following:
Because websites can be accessed from virtually anywhere in the world, compliance with a complex web of state, federal and foreign legal requirements and systems can present significant challenges.
In addition, websites may be accessed by children, which are protected by a number of state and federal rules.
In some instances, site users can post materials that infringe the intellectual property of third parties, creating potential liability for the site hosts.
Some sites offer software and other technical data which may be downloaded or shared across the web. These sites must ensure that the information is not exported in violation of US trade laws or obtained by terrorists.
Sites obtaining private data and financial information are often the target of cyber-terrorists, identity thieves and other criminals, and must ensure their sites are secure.
Finally, in the event of a dispute, there may be questions regarding where it would be proper to sue, whether the courts have authority over all the parties, and whether any judgment can be enforced.
Conclusion
eCommerce and Internet Business present a number of legal issues and challenges, many of which are addressed by various traditional legal areas. However, the global accessibility and ever-present nature of eCommerce and Internet Business law require not only an appreciation of the interplay between these various areas of law, but also an understanding of the novel and unique legal issues presented by a company’s online presence.