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Internet Business and E-Commerce - An Overview
Internet law is evolving quickly as the Internet's usage continues to expand. E-commerce refers to all forms of business activities that are conducted electronically or over the Internet. Some of the more important issues in this area include domain names, trademark issues, jurisdictional concerns and copyright protection. An Internet law attorney at Erik S. Syverson in Los Angeles, California can assist with all legal issues related to Internet business and e-commerce.
Domain Names
A domain name is a combination of letters and/or numbers that identifies a Web site. Choosing a domain name is one of the first concerns when setting up an Internet business. If you already have an established "brick and mortar" business, and are now setting up a Web site, the name of that business is a good choice for domain name, if it is available. Another possible choice for domain name is the name of a product line or service that the company provides. These names are already identifies for your business and will likely make it easier for potential customers to find you on the Internet.
Once you have found a unique domain name, you may file for registration with an accredited registrar. The Internet Corporation for Assigned Names and Numbers (ICANN) controls Internet domain name management and accredits all registrars. Generally, applicants are required to warrant that they have the right to use the name, and that the use does not interfere with or infringe third parties' rights.
Trademarks and Internet Business
There are also issues related to trademarks and service marks of which a business with e-commerce operations should be aware. A trademark is any word, name, symbol or device, or any combination thereof used by a person or intended to be used in commerce to identify and distinguish his or her goods, including a unique product, from those manufactured or sold by others and to indicate the source of the goods, even if that source is unknown. 15 U.S.C. §1127. A service mark is any word, name, symbol or device, or any combination thereof used by a person or intended to be used in commerce to identify and distinguish the services of one person, including a unique service, from the services of others and to indicate the source of the services, even if that source is unknown. 15 U.S.C. §1127.
There has been a large amount of litigation over issues involving trademarks and the Internet. One issue is cybersquatting, which is the registration of many domain names containing company trademarks or common misspellings of company names with the intent to sell them to the rightful trademark owner, usually for a large amount of money. Another Internet-related trademark issue is disputes over a single domain name by parties that both have a reasonable claim to use for selling different goods or services. For example, a company called Banana Dry Cleaners in New Jersey and a company named Banana House Cleaners in Texas both want to use www.bananacleaners.com as a domain name. Trademark infringement, the unauthorized use of another's trademark, is also common on the Internet. For example, a Web site may display a competitor or another party's trademarks without permission.
Copyright Law and Internet Business
Whether an Internet business owner is creating a new Web site or attempting to protect one that already exists, an understanding of the copyright laws is advisable. Copyright law is exclusively federal and governed by the Copyright Act (17 U.S.C. §§101 et seq.). The following materials can be protected with a copyright: literary works; dramatic works; musical works; movies, television shows and other audiovisual works; sound recordings; pictures, graphics and sculptures; architectural works; advertising; and combinations of these materials. For example, a Web site that contains words and pictures can be protected.
Interestingly, a copyright in an original work exists from the time it is created and put into tangible form, even without registration. However, registering a work with the Copyright Office of the Library of Congress grants an owner certain statutory rights. Therefore, once you have created an original Web site for you business, it is best to register with the Copyright Office. In addition, you should also place a notice of copyright on the site.
Jurisdiction over Internet Businesses
When creating or redesigning a Web site for your business, it is important to consider where the company could be subject to liability for its e-commerce activities. Jurisdiction is the legal authority of a court to hear and decide a case. Whether a court has jurisdiction over an Internet business is complicated because an Internet business is "located" on the Web, is theoretically available to users worldwide and "activity" within a forum is difficult to define with respect to Internet usage.
While the Internet is a great way to expand a business, increase sales and introduce your company to many new potential customers, a Web site may also give forums across the US jurisdiction over the business. Generally, the more expansive and interactive your Web site and Internet activities, the more likely it is that the business will be subject to jurisdiction in a given state. For example, a court is more likely to find jurisdiction if the business conducts sales through its Web site or enters contracts over the Internet with than if the Web site is merely passive, providing information and advertisements.
Conclusion
These are only some of the issues with which the owner of an Internet business must be concerned. There are numerous other considerations a business should think about when deciding whether to establish or expand its online presence. A lawyer at Erik S. Syverson in Los Angeles, California can advise your business on legal issues related to the Internet and e-commerce.
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