Wednesday, September 26, 2012

Some Legal Pitfalls of Doing Business Online


Welcome back, friends. This month I want to take a look at some legal cases and legal circumstances that could affect a business such as the one I am building. Online marketing for musicians, much like any other form of entertainment business, is susceptible to legal battles. I’m going to discuss a few different situations with you here.

The first legal case I researched was between the Grand Resort Hotel and Convention Center and Tripadvisor. As you may or may not know, Tripadvisor is a trip planning and recommendation website tat covers all aspects of taking a trip from hotels, flights, and even restaurants. This case discusses a post that was found on Tripadvisor’s website that discussed the “Dirtiest Hotels”. Unfortunately for the Grand Resort, they made the list and had pictures of their business displaying horribly dirty and unsanitary conditions. The two parties then ensued in a time consuming and costly legal battle. The Grand Resort claimed slander, but the lawsuit never stuck due to the plaintiff’s failure to state a claim, a costly mistake. Although Tripadvisor escaped this legal battle due to somewhat of a default, they never posted this yearly story again. This is just one instance where online marketing and a web-based business must be aware of their circumstances and must be very careful what the post on the internet. 

Another aspect of my music marketing company involves allowing for customer and fan feedback. An interesting case I found, Hadley vs.GateHouse Media Freeport Holdings, Inc., discusses what happens when outsiders have the ability to publish comments on a website. In this case, Hadley and been linked with crimes on the GateHouse website via a third party post. In the end, the media company was not held liable for the outsider’s post. This is a very important element to consider when operating any kind of online business with a customer response section. 

Another interesting case of online publishing is Phaedra C.Parks vs. Vibe Holdings, LLC. This case involves a former reality TV star suing for defamatory accusations posted online by Vibe Holdings. In this case, the plaintiff was awarded damages. It makes the point that when hosting a business online, especially any kind of media or marketing business, the content generated on the site must be watched excessively and constantly. There are a number of things that can happen to end up in a courtroom when publishing information online. 

Thanks again for stopping buy. Once again, in any kind of entertainment business hosted online, it is imperative to be ever careful of legal issues that may be involved with your company. In today's world, people are ready to jump at the chance to sue just about anybody, especially entertainment companies. So, beware of the legal pitfalls involved. 

Thanks again for stopping by, 

DK




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