Category: Business Law

  • How To Trademark a Business Name

    Can programming language names be trademarks? by opensourceway from Flickr
    Can programming language names be trademarks? by opensourceway from Flickr

    Last week a friend asked me if a business could trademark their name. Anyone who’s spent much time with me knows that the answer to every legal question is “It depends.” In this case it depends on whether your business name is trademarkable and if anyone else had claimed the same or a similar name for your category of goods or services.

    When you start a business, check the U.S. Patent and Trademark Office (USPTO) database to see if anyone has registered the name you want to use (or a similar one) for selling the same goods and services as you. If someone’s already using the name you want, you will likely be infringing on their trademark rights if you use the name on your products. They could force you to change your name and rebrand if you use the name that someone’s already registered. If you were using the business name on your products and someone registers the name before you, you’ll be in the Burger King situation where you can keep using your name, but only in your established market.

    Once you establish that your desired name hasn’t been registered by someone else, you have to look at whether the name you want is trademarkable. Not every business or product name can be a registered trademark. Here are the five types of trademarks.

    1. Fanciful Marks: Fanciful marks are words that didn’t exist before you stuck it on your products. Examples include Exxon and Kodak. These marks can be registered with the USPTO main registry.

    2. Arbitrary Marks: Arbitrary marks are words in real life, but they are stuck on a product that has no connection to the word. For example, the mark “Apple” for computers, cell phones, and digital music players is an arbitrary mark. The fruit has nothing to do with digital machines and gadgets. These marks can be registered with the USPTO main registry.

    3. Suggestive Marks: Suggestive marks are marks where if you think about it, you can make a connection between the mark and the product. “Playboy” as a mark for a men’s magazine is a suggestive mark. These marks can be registered with the USPTO main registry. It’s sometimes hard to discern the difference between suggestive and descriptive marks.

    4. Descriptive Marks: Descriptive marks merely describe the product. This includes businesses where the owner names the business after themselves. These marks can be registered on the USPTO main registry after they’ve established “acquired distinctiveness,” which usually means you’ve been using the mark for five years.

    5. Generic Marks: Generic marks are the name of the products themselves. It would be if you had an apple orchard and wanted to sell your apples using the mark “Apples.” If the USPTO let you register that mark, no other apple farmers could call their apples “apples” without infringing on your trademark rights. Generic marks can never be registered with the USPTO.

    This video may help. You can watch it below or see it here.

    If you want to know if your business name can be your trademark and the risks and rewards surrounding registering your mark, contact a trademark attorney in your community.

    You can connect with me on TwitterGoogle+FacebookYouTubeLinkedIn, or you can email me.
    You can also subscribe to the Carter Law Firm newsletter.
    Please visit my homepage for more information about Carter Law Firm.

  • Reddit’s New Privacy Policy – How Terms of Service Should Be Written

    Startup Schwag Bag #2 by homard.net
    Startup Schwag Bag #2 by homard.net from Flickr

    Are you on Reddit? I love Reddit. It’s a great way to connect with the various online communities that matter to you.

    Reddit recently announced that its new privacy policy is going into effect on May 15th. You can read the text of the policy here. Seriously, go read it.

    What I love about this policy is how simply it is written. It’s straightforward, well organized, and written in English – not legalese. It’s a policy that Joe Average people can read and understand how the site will use their information. I appreciate that Reddit even said that they want their users to read and understand their policies.

    Reddit’s approach should be the standard way that lawyers write a company’s terms of service for their clients’ websites. They should be simple, direct, and be organized in a way that it’s easy for users to understand the site’s rules. They don’t need to be excessively long or use words that no one uses in real life.

    A website’s terms of service is a contract between the site’s owners and its users. If you disagree with a site’s terms, don’t use the site. It’s important when you join a website where you will be interacting with others or posting content that you understand your dos and don’ts as well as what the site can do with your information and anything you post.

    Some people think it’s ok to simply take another website’s terms of service, change the name of the company to their own, and slap it on their website. This is asking for trouble, especially if you don’t understand the terms that you’re copying. You may be creating rules for your users that you don’t want in place. Reading other website’s terms of service is a good place to get ideas if you want to try to draft your own, but it shouldn’t be a substitute for making sure your terms of service reflect your individual or company’s needs. You never know who draft the terms you’re copying.

    I love drafting custom website terms of service. I get to combine my client’s needs with what the law allows and come up with a document (in English) that will work for them. I know it sounds boring to some people, but to me it’s like a big puzzle that I get to figure out.

    If you operate a website where users get to post content or interact with each other, please make sure you have a solid set of terms of service that fits your needs. If you can’t afford to hire an attorney to draft your terms of service from scratch, at least have one to review your terms of service or pay for a consultation to discuss what your provisions should be in your terms of service.

    You can also subscribe to the Carter Law Firm newsletter.
    You can connect with me on TwitterGoogle+FacebookYouTubeLinkedIn, or you can email me.
    Please visit my homepage for more information about Carter Law Firm.

  • FAQs about the Legalities of Social Media

    Carter Law Firm's Official Postcard - let me know if you want me to send you one.
    Carter Law Firm’s Official Postcard – Let me know if you want me to send you one.

    I had the pleasure of speaking at the Public Relations Society of America’s Western District Conference last weekend. I led two sessions: “So you want to do a flash mob” and “The Legal Side of Blogging: 10 Questions to Ask Before you Hit ‘Publish.’” Both sessions were great and I wanted to share some of the frequent questions I get when I talk about the legalities of social media.

    What should you do if you’re outsourcing your blog content?
    You need a kick ass contract that clearly states who owns the copyright in the content that is created. If the hiring company obtains copyright, does the blogger get permission to put a copy of the work in their portfolio to obtain other work? The contract should also state who is responsible if there are any problems related to the work (i.e., copyright infringement claim) or if there are any disputes related to the contract.

    What should you do if you want to use a photo from a company’s site, such as if want to write a positive review of their company?
    There’s a chance that using the photo could qualify as fair use; however it’s probably best to avoid the possibility of being hit with a copyright infringement claim by asking the company if you can use their photo. You never know who owns the rights to an image and if there are any restrictions related to using it.

    What’s the worst case scenario if you use an image from Google Images without verifying that it was available for use with a Creative Commons license or had been released to public domain?
    You could be sued for tens of thousands of dollars for copyright infringement. I always say that just because someone sues you that it doesn’t mean they’re going to win, but in this case, they might. You can still be sued and lose even if you didn’t mean any harm.

    I get permission to use every photo on my blogs or use photos that are available under Creative Commons licenses that allow me to modify and commercialize each image.

    What if you’ve been using Google Images or you haven’t kept track of what images you’re allowed to use?
    Probably no one wants to hear this, but I’d rip every image out of your site and start over, making sure that you own or have permission to use every image on your site.

    These are my rules of thumb when it comes to social media:

    • Assume everything you post online will be seen by your best friend, your worst enemy, your boss, and your mother. If you’re not ok with one of those people seeing what you want to say, don’t post it.
    • Don’t post anything online that you wouldn’t put on the front page of the newspaper.

    For more information about the legalities of social media, please check out my book The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed.

    You can also subscribe to the Carter Law Firm newsletter.
    You can connect with me on TwitterGoogle+FacebookYouTubeLinkedIn, or you can email me.
    Please visit my homepage for more information about Carter Law Firm.

  • DMCA Abuse

    Copyright license choice by opensourceway from Flickr
    Copyright license choice by opensourceway from Flickr

    The Digital Millennium Copyright Act (DMCA) is part of the copyright law. Its purpose is to protect people who provide online forums but don’t control the content people post to them – like YouTube and Pinterest. If they receive a notice that material on their site is allegedly copyright infringement, they must remove it. This law gives content creators a way to react to copyright infringement when someone posts their work online without permission. Instead of sending a cease and desist letter to the person who stole their work, they bypass them and deal with the infringer’s webhost instead.

    Lately, I’ve seen a few instances where people have been improperly using the DMCA to get material removed from the internet that they don’t like. I’m starting to refer to these acts as DMCA abuse.

    1. Using the DMCA to address TM Infringement
    The DMCA should only be used for copyright issues – when you suspect someone is using your original content without your permission. Don’t use it to removed suspected instances of trademark infringement.

    In a recent incident, GoPro allegedly sent a DMCA takedown notice to DigitalRev’s webhost to remove a picture of its camera from the site. The photo was in article that compared GoPro against another camera. GoPro didn’t think DigitalRev copied their content, but that they were using a picture of the camera that had the wrong branding. GoPro should have sent DigitalRev an email with a correct image of the camera instead of getting the whole article pulled for alleged copyright infringement.

    2. Using the DMCA to Eliminate the Original
    This story really bothered me. Somebody copied someone’s original content onto their site, and then used the DMCA to claim that they were the real owners and get the original removed for its site. Thankfully the original author could get their work put back on their site by sending a DMCA counter takedown notice.

    Apparently this is a common incident. This behavior was so disturbing, I had to make a video about it.

    If you think you have questions about how you, your brand, or your content is being used online, please consult an intellectual property attorney. Don’t just send a DMCA takedown notice – that may not be the right tool to address your problem. When you send a DMCA takedown notice, you attest under the penalty of perjury, that your statements are true. If you send a DMCA takedown notice and it turns out what you did qualifies as what I call DMCA abuse, you may have committed a crime.

    For more information about copyright, please check out my book The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed.
    You can connect with me on TwitterGoogle+FacebookYouTubeLinkedIn, or you can email me.
    Please visit my homepage for more information about Carter Law Firm.

  • Publishing Contracts: Copyright Assignment vs Copyright License

    The best analogy for copyright is a jar of markers where each marker represents one of your rights - 10 things: Sharpies by Crystl from Flickr
    The best analogy for copyright is a jar of markers where each marker represents one of your rights – 10 things: Sharpies by Crystl from Flickr

    I had the pleasure of speaking about the legalities of publishing at Changing Hands Indie Author Conference on February 9, 2013. My session covered the basics of copyright, the importance of registering your copyrights and publishing contracts. I wanted to do a recap of the two types of publishing contracts from a copyright perspective: copyright assignments and copyright licenses.

    A copyright is the rights you get in your work. Your rights are created the instant you have an original work of authorship fixed in a tangible medium. As the copyright holder, you have the exclusive right to copy, distribute, display, perform, and make derivative works based on your original work. If you want to let someone publish your work, you need a copyright assignment or a copyright license. This should be a signed contract between the parties and it should be explicit about the rights you’re giving up (if any) and what you will get in return.

    Copyright Assignment
    When you give someone a copyright assignment, you give them your copyright. When you have a copyright assignment, you do not own your copyright anymore; the other party does. If you publish your work after you assign it to someone, you will be committing copyright infringement, even though you were the original author of the work. Some publishers require you to assign your copyright to them or else they won’t publish your work.

    If you give someone a copyright assignment and you later regret the decision, you have to buy your copyright back from them. I know at least one artist who sold the copyright in his work and later purchased it back because it was more lucrative for him to control it.

    Copyright License
    If you grant someone a copyright license, you retain ownership of your copyright and you give the other party permission to use some or all of your copyright rights. You may grant a publisher the rights to publish your work in print and/or as an ebook but retain the right to create an audio version of your work. J.K. Rowling retained her internet rights to the Harry Potter series when she negotiated her contract with her publishers, which is why she could create Pottermore.

    If you license your work, the license should explicit state whether the license is exclusive or non-exclusive, time-limited or perpetual, and clearly state how you will be compensated for granting the other party the license.

    Publishing contracts are complicated and it’s best to have a lawyer review the contract before you sign it to ensure you understand what rights you’re giving up and what rights you get to keep. As always, if there’s a portion of a contract that you don’t understand, don’t sign it.

    I also created a video this week about the difference between copyright assignments and copyright licenses here.


    You can connect with me via TwitterGoogle+FacebookYouTube, and LinkedIn, or you can email me.
    Please visit my homepage for more information about Carter Law Firm.

  • How To Get a Free Consultation with Ruth Carter

    Photo by Don McPhee
    Photo by Don McPhee

    I’m excited to share that I’ve teamed up with Gangplank in Chandler to offer free legal mentoring services on the first Monday of the month from 1pm until 4pm. I can see 3 people for 45-minutes each every month at no charge.

    Hello Beautiful by Gangplank HQ from Flickr
    Hello Beautiful by Gangplank HQ from Flickr

    My legal mentoring hours are a great opportunity to informally bat around your ideas and questions about your projects and business. Coming to my mentoring hours does not create an attorney-client relationship between us. We won’t have any ongoing obligations to each other unless we decide to create a formal working relationship.

    Gangplank provides free collaborative workspaces in Arizona, Virginia, and Canada. They provide the physical and social infrastructure for creative people to launch their startups. These are wonderful places for freelancers and new business owners to work. In Arizona, Gangplank has locations on Chandler, Avondale, and Tucson.

    I love working with Gangplank. They have a fantastic group of dynamic people who have an enormous amount of creativity and drive. They have a very informal environment and they do incredible work. It fits brilliantly with my desire to be the approachable lawyer who wears t-shirts.

    Skulls & Stripes by Gangplank HQ from Flickr
    Skulls & Stripes by Gangplank HQ from Flickr

    Gangplank in Chandler is located at 260 South Arizona Avenue. Their events calendar shows their mentors’ availability and also all their other events like their weekly brown bag presentations, hacknights, and workshops. They have a wealth of other mentors too who provide assistance in the areas of business, leadership, marketing, design, finance, and technology.

    Gangplank is in charge of scheduling the mentoring hours so please check their event calendar for my availability. You can book a mentoring appointment with me by emailing them at chandler@gangplankhq.com.

    Please note: my mentoring hours at Gangplank are not for my ongoing clients with whom I’ve created an attorney-client relationship. These appointments are for people who think they might need a lawyer, people who just want some general legal information, law students, anyone else who wants to chat for an hour.

    You can connect with me via TwitterGoogle+FacebookYouTube, and LinkedIn, or you can email me.
    Please visit my homepage for more information about Carter Law Firm.

  • Affordable Legal Services for New Business Owners

    One Upon a Time . . . a Direct Line to the President of the United States by AGeekMom from Flickr
    One Upon a Time . . . a Direct Line to the President of the United States by AGeekMom from Flickr

    Some of the lessons I’ve learned in my first year as an attorney is that a lot of entrepreneurs, especially those who are operating on a shoestring budget, don’t seek out legal services when they start their business. There seems to be three main reasons why a new business owner does this:

    1. They think it’s too expensive.
    2. They are afraid it’s going to be complicated.
    3. They don’t understand the legalities of starting a business.

    None of these are valid reasons for not calling a business attorney.

    I recently attended a business seminar where a young man admitted he put off creating a business entity for years because he thought it was going to be hard. He was blown away by how easy it was. His fear put him at serious risk because until he created an entity, he could have lost his personal assets if the business was found liable for causing damage to someone because he didn’t have an entity that separated the business’ assets from his personal assets.

    Before you assume you can’t afford legal services, call an attorney and ask what you need and what it will cost. Even if you can’t afford everything a lawyer could do for you, a lawyer who understands your situation will work with you and your budget. They will tell you what you can do on your own and likely provide resources to help you do it. They can tell you when it’s worth it to pay an attorney to do something for you, and the ramifications you could face if you don’t.

    When you can’t afford to have your attorney draft a document for you, ask them if you could purchase a consultation to discuss how you could do it yourself or if you could draft it yourself and pay them to review it. There will be times when it’s cheaper and better use of your time to hire an attorney to draft the document from scratch than to try to write the first draft yourself. Call the attorney you’d hire to review the documents first to make sure that’s going to the best course of action. It might be more expensive to fix what you wrote.

    There may also be organizations that provide cheap or free classes and consultations for business owners in your community. I spend three hours on the first Monday of the month providing free legal mentoring at Gangplank in Chandler. These services are a great way to get your needs met while keeping you within your budget or to free up more of your budget to afford your business’ legal needs.

    If you’re a new business owner or thinking of starting a business, please call a business attorney in your community to discuss your legal needs. I’ve worked with enough clients to know that it’s easier and cheaper to do things right the first time than to clean up the mess that results when you don’t.

    You can connect with me via TwitterGoogle+FacebookYouTube, and LinkedIn, or you can email me.
    Please visit my homepage for more information about Carter Law Firm.

  • Choose Your Strategy to Protect Your Work Before Posting it on the Internet

    My artwork for Dans office by Romers from Flickr
    My artwork for Dans office by Romers from Flickr

    A friend recently asked me about a common situation her clients face. They are artists who, before the internet, could only show their work to a large audience at art festivals. She said these artists hesitate to market their work online because they’re afraid that it could be stolen.

    Could their work be illegally copied if they show it on the internet? Yes. I worked with an artist last year who had their entire catalog illegally copied.

    Should they us the internet to market their work despite this risk? Probably. If you’re an artist you have to weigh the risk of having your work illegally copied against the benefit of reaching a larger audience.

    My unsolicited advice to artists is to decide how you want to respond if your work is stolen before you put your work out there and plan accordingly.

    • If you want to sue the people who illegally copy your work, you have to register your copyrights with the U.S. Copyright Office.
    • If you want to license your work, meaning people can pay you for the right to reproduce your work on their sites, you need to have licensing terms and fees. This way people can legally purchase the rights to use your work and you can send a bill to the people who illegally copy your work. This recently happened to a friend of mine.
    •  If all you want to do is force them to remove the image when you detect someone’s stolen your work, you need to understand the Digital Millennium Copyright Act or know an attorney who does who can send the proper takedown notice on your behalf.

    When you put your work out there, you should be diligent about watching the internet for potential infringement. Often times people think they can use your work if they provide an attribution and a link to the original. What they’ve really done is made it easy for you to determine who is using your work without your permission.

    My two cents on this issue is you shouldn’t let your fears about copyright infringement prevent you from using the internet to market your work if you’re an artist, but you should have a strategy in place in advance for dealing with it when it occurs.

    For more information on this and related topics, please check out my book The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed, available on Amazon.

    You can connect with me via TwitterGoogle+Facebook, YouTube, and LinkedIn, or you can email me.
    Please visit my homepage for more information about Carter Law Firm.

  • Register Your Blog’s Copyright Every Three Months

    This Sewer is Copyrighted by cogdogblog from Flickr
    This Sewer is Copyrighted by cogdogblog from Flickr

    DISCLAIMER: Recent conversations with the Copyright Office have led me to change my stance regarding blogs and copyright registration. Please see this post for my updated views.

    My cause for the next year is to encourage independent writers and artists to register the copyrights in their work. If you have a blog, you have to register your content every three months to maximize your options when someone steals your work.

    I know a lot of people wouldn’t notice if someone stole their content, but what if someone did that to you? What if someone did that to you and it pissed you off? You might want all your options to be open for you then.

    The U.S. Copyright Act says you get the most options when someone steals your content if you register your work within three months of publication or one month of learning of the infringement – whichever happens first. For most bloggers that means they have to register their blog content every three months. Here is a simple breakdown of your possible options depending on when you registered your work.

    Possibility #1 – You Never Registered Your Content
    The law says you have to register your copyright to sue for copyright infringement. If you refuse to register your work, that’s your prerogative, but that means you can likely only send a cease-and-desist letter or a DMCA takedown notice if someone steals your content.

    Possibility #2 – You Registered Your Content After Three Months of Publication
    You can sue for copyright infringement, but you can only ask for your “actual damages.” This is the amount of money the thief made from stealing your work and/or the amount of money you didn’t make because he stole your work. In the blogging world, your actual damages could easily be $0.00. Most people don’t sue for actual damages unless the thief made bank off what he stole. You’d also be responsible for paying your attorneys’ fees.

    Possibility #3 – You Registered Your Content Within Three Months of Publication
    You can sue for copyright infringement, and you can ask for “statutory damages.” Statutory damages can be as high as $150,000, regardless of how much money you lost or the thief made from stealing your work. If you register your work within this time frame the court can make the thief pay your attorneys’ fees too. A lot of attorneys ask if and when you registered your work when you come to them with a copyright claim because they suspect you can’t or won’t want to pay the legal fees that go into fighting one of these cases.

    Registering your copyright is preparing for the worst-case scenario. Hopefully you’ll never need to deal with copyright infringement, but you may want to have all your options available to you if it does. You can read about my experience registering my blogs’ copyrights in a post I did just after my first registrations. Registering a literary work only costs $35 per application.

    If you are a writer, blogger, or artist, please consult a copyright attorney about the best ways for you to protect your work. Many people can register multiple works under one application, but there may be instances where it’s worth it to register a work separately.

    You can connect with me via TwitterGoogle+Facebook, and LinkedIn, or you can email me.
    Please visit my homepage for more information about Carter Law Firm.