Legal Issues with Periscope

Vents by SecretLondon123 from Flickr (Creative Commons License)

Vents by SecretLondon123 from Flickr (Creative Commons License)

Have you tried Periscope? It’s one of the new livestreaming apps where you can let everyone into your world and they can post comments and questions. I’m on it. It’s pretty fun – except when it overheats my phone.

Of course, being a social media lawyer, I started thinking about what types of legal hot water someone could get into using this or any other live video app. Here’s my preliminary list:

Copyright
You own the content you post via Periscope, but you grant Periscope and anyone who has access to it permission to use it.

An artist may be upset with you if you use Periscope to display, distribute, or perform their work without their permission – i.e., if you’re playing someone’s song, doing a dramatic (or not so dramatic) reading, or showing someone’s art (even with an attribution).

Trademark
If you’re using Periscope to talk about products, make sure you’re not confusing people by giving the impression that you represent the company.

Federal Trade Commission Rules
If you are lucky enough to have sponsorship or otherwise be compensated for reviewing products, make sure you disclose that too. If you’re doing reviews on periscope, you’re legally required only to give truthful and accurate reviews of products and services. Otherwise, the FTC could fine you up to $11,000.

Trade Secrets
Every company has secrets that give them a competitive advantage. Make sure you don’t accidentally disclose your company secrets on your videos.

Privacy
Although there is no expectation of privacy in anything you do in public, there are a few exceptions for bathrooms, changing rooms, medical offices, lawyers’ offices, as well as within the walls of your home. Be thoughtful and respect full when it comes to shooting videos of others.

Remember, you have no expectation of privacy in anything you post online.  Just like people have been fired for other social media posts, you can be fired for a Periscope video. You could also do tremendous reputational harm to yourself.

Defamation
I can foresee people using Periscope to vent when they are angry. Be careful that you don’t cross the line and tell a lie about another person. Even if you didn’t intend to tell a lie, you could still face a lawsuit for defamation. If you are especially upset, it may be best to wait 24 hours to calm down and verify your information before talking about the situation on live video. Think before you speak.

These legal issues apply to all live streaming video apps so be careful before you jump on your virtual soapbox. The FCC does not regulate online streaming video, so there are no “deadly words,” but there are also no 7-second delays or buttons to bleep you out.

These are my rules of thumb when it comes to posting anything on the internet:

  1. Don’t post anything online that you wouldn’t put on the front page of the newspaper.
  2. Assume everything you post will be seen by four people: your best friend, your worst enemy, your boss, and your mother. If you don’t want to one of those people to see what you’re thinking about posting, don’t say it.

This is an area of law that is still new and developing. I’m excited and curious to see what legal cases will come out of live video apps like Periscope and Meerkat. If you want additional 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 contact me directly or connect with me on TwitterFacebookYouTube, or LinkedIn.

Starting a Business in Arizona

Little Waitrose - Birmingham Snow Hill - Colmore Row - Now open - sign by Elliott Brown from Flickr (Creative Commons License)

Little Waitrose – Birmingham Snow Hill – Colmore Row – Now open – sign by Elliott Brown from Flickr (Creative Commons License)

Starting a business is exciting and can be overwhelming at times with everything that has to get done. I wish more business owners put more energy into creating structure within their business when they contemplate and launch their endeavors. It will save a lot of pain and frustration in the long run. If your plans for 2015 include starting a business, make sure these steps are on your to-do list in the first month or two of starting your company.

Discuss with your accountant what type of entity you should form. Every company needs an accountant. In Arizona, you have the option to create a C corporation, an S corporation, a B corporation, or an LLC. I tell all my clients to meet with their accountant to make sure they select the right entity and understand the corresponding tax implications and other responsibilities.

Check with the Arizona Corporation Commission and the U.S. Patent and Trademark Office to ensure that the name you want for your business is available. Many companies make the mistake of assuming that just because the website domain they want is available that their desired company or product name hasn’t been registered as a trademark for another company. If you use a name that has already been registered by someone else in the same or similar industry, they can make you rebrand.

Submit the necessary paperwork and fee with the Arizona Corporation Commission. Consider filing your trade name with the Secretary of State’s Office as well. The forms to file your Articles of Incorporation or your Articles of Organization are on the Arizona Corporation Commission’s website. Make sure you get all the supplemental forms you need. The standard filing fee is $60 for a corporation and $50 for an LLC. The filing fee to register a trade name with the Secretary of State is $10. (Registering a trade name prevents other companies in Arizona from using the same name. It is not a substitute for filing a federal trademark.)

Create a separate bank account for your business and set up your accounting system. It’s imperative that you keep your company’s corporate veil intact. I strongly recommend using an accounting system like QuickBooks. It makes life so much easier when you’re reviewing your books and preparing for taxes.

If your LLC has more than one owner, create an operating agreement. If you have a corporation, write your bylaws. These documents will dictate how you will run your business, including how you will divide responsibilities and how you will address problems when they occur. They will help you decide in advance how you will address situations that are likely to occur.

Create the contract templates you will need for your business. If applicable, write the terms of service for your website. If you are going to be hire to provide a product or service by multiple customers, you will want to have contract templates for those interactions. This creates consistency and uniformity which will help you build your reputation as well as be more efficient. You can customize your templates to suit your needs. I encourage business owners to look at others’ templates for ideas of what they might want to include but be leery of using someone’s template unless it’s been reviewed by your lawyer.

Discuss what intellectual property your business will or might create and what strategies you will use to protect it. Every business has intellectual property: copyrights, trademarks, patents, and trade secrets. It’s often the company’s most valuable asset. It is important you understand what you have and the best ways to protect it.

Ideally, you would have a lawyer involved from the beginning of your business, if only to tell you what you should do and when you’re better off hiring a lawyer to work for you. Even if you’re on a shoestring budget, you can find a reasonably priced business lawyer or resources for startups to assist you. It’s also prudent to schedule an annual consultation with your lawyer to educate yourself about what legal issues might be on the horizon and to get advice about what more you should do to protect your business as you have the ability to afford it. It’s easier and cheaper to prevent problems than to clean up the mess when something bad happens.

If you want to chat with me about starting a business in Arizona, feel free to connect with me on TwitterFacebookYouTubeLinkedIn, or you can email me.

Please visit my homepage for more information about Carter Law Firm.