{"id":237,"date":"2011-11-28T12:35:22","date_gmt":"2011-11-28T20:35:22","guid":{"rendered":"http:\/\/foundersnetwork.com\/?p=237"},"modified":"2018-11-11T15:55:51","modified_gmt":"2018-11-11T23:55:51","slug":"website-best-practices-%e2%80%93-terms-of-use-and-privacy-policy","status":"publish","type":"post","link":"https:\/\/foundersnetwork.com\/website-best-practices-%e2%80%93-terms-of-use-and-privacy-policy\/","title":{"rendered":"Terms of Use and Privacy Policy"},"content":{"rendered":"

The following is a guest post from fnBlog Contributor Matthew Faustman, founder of\u00a0UpCounsel<\/a>.<\/em> \"\"<\/a><\/p>\n

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In this day and age, user generated content is a large part of our technology products. \u00a0As such, this raises issues like Copyright infringement and privacy, which can expose web and mobile application\u00a0entrepreneurs\u00a0to extensive liability.<\/p>\n<\/div>\n

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There are steps that we can take, however, to limit our exposure to liability. \u00a0Below is a discussion of these preventative steps – usable by most modern websites that collect user data or host user generated content. By no means is this list exhaustive – each situation is unique and we highly advise that you consult a seasoned Intellectual Property (“IP”) attorney when considering these protections.<\/p>\n<\/div>\n

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1. \u00a0Have Users Agree To A “Terms of Use” (Terms of Service Agreement)\u00a0<\/span><\/strong><\/p>\n<\/div>\n

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Terms of Use (“TOU”) (also known as Terms of Service)\u00a0are terms and conditions that a customer must agree to in order to use a service. \u00a0TOUs can cover a range of issues, including acceptable user behavior online, a company’s marketing policies,\u00a0and copyright notices.<\/p>\n<\/div>\n

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Really great TOUs are drafted to meet the individual specifications of a website. \u00a0They have powerful implications and should not be taken lightly. For a full appreciation of a TOU, see this\u00a0post<\/a>\u00a0by IP attorney Jill Bowman (its pretty amazing).<\/p>\n<\/div>\n

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Some of the major flaws in TOU agreements are related to the protections that people seek under the\u00a0Digital Millennium Copyright Act<\/a>\u00a0(“DMCA”) as explained by startup guru Dana Shultz in his\u00a0blog post<\/a>\u00a0on the issue.<\/p>\n<\/div>\n

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Here is an example template for a\u00a0Terms of Use<\/a>\u00a0for a web or mobile application that hosts user generated content. \u00a0This is merely an example and is not intended to be used directly on your website.<\/em>\u00a0\u00a0Use it only as a reference for when you speak to an attorney.<\/p>\n<\/div>\n

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Some major considerations for a TOU –\u00a0Contributed by\u00a0Jessica Hubley, Esq.<\/a><\/em><\/p>\n<\/div>\n

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  1. Limit the site’s liability to users to some very small dollar amount (e.g., $10 or fees actually paid for services in the past 6 months);<\/li>\n
  2. Have the user indemnify the site for any third party claims arising from their use of the site; and<\/li>\n
  3. Include an arbitration clauses to reduce class action suits.<\/li>\n<\/ol>\n<\/div>\n
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    2. \u00a0Comply With The DMCA<\/span><\/strong><\/p>\n<\/div>\n

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    The Digital Millennium Copyright Act (\u201cDMCA\u201d) provides web and mobile application owners protection against liability for copyright infringement resulting from content uploaded by third party users. \u00a0Providers, however, must comply with the DMCA to be eligible for such Safe Harbor. \u00a0For more information on this topic, see another great\u00a0post<\/a>\u00a0by Jill Bowman. \u00a0Below are two things your company can do to help fall under these Safe Harbors.<\/p>\n<\/div>\n

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