Losing Your Idea Through Social Media

Before presenting an idea to an investor, companies usually ask them to sign a Non Disclosure Agreement (“NDA”). The NDA is viewed as critical to protect the company or individual,and their idea. In the small world of entrepreneurship, the fear of losing is a cashable idea is daunting.

And then, an entrepreneur decides to take his idea to every social media platform that she/he can find.  They leak seemingly simple information such as, “working on my new idea!” and “can’t wait to get investors interested in bio tech in Eastern Europe.”  Suddenly, coupled with a series of other posts on the same topic, another person puts the pieces together and voilà – the idea is gone. There is no protective NDA, no contract, and no proof that it was your idea that was stolen.

The desire to engage with others throughsocial media has tapped into the excitement of sharing every brilliant idea you have with your closest online friends – all 800+ of them.  However, if you were to put all of those people into a room, you would be more secretive about your idea – afraid of losing it to someone else.

So next time you want to post on a social media platform about you newest business idea… Remember that you are giving a green light to the loss of your idea – and no NDA to prevent it.

by: Benish Shah, Esq. & Sheheryar Sardar, Esq., Sardar Law Firm LLC

For more information, contact: Sardar Law Firm at sardar@sardarlawfirm.com.

Follow Sardar Law Firm on Twitter:http://twitter.com/sardarlawfirm

When do Preliminary Contracts Bind?

In a constantly evolving financial climate, it is likely that parties will seek to avoid agreements reached with other parties that are no longer profitable or commercially viable.  Such refusal to abide by agreements leads to disputes between parties, often over one issue:  whether the agreement was binding and enforceable.

Amcan Holdings v. Canadian Imperial Bank of Commerce

In a recent case in New York, Amcan Holdings, Inc. v. Canadian Imperial Bank of Commerce, 2010 NY Slip Op 00786, (“Amcan”), the Appellate Division of the Supreme Court of New York concluded that an executed “Summary of Terms and Conditions,” which delineated a proposed financing between lender and borrower, was not a formally binding agreement – but an “agreement to agree.”

Read more here.

PR & Social Media: Let’s Not Get Sued

Social media is an efficient, low cost public relations (PR) tool. The social media platform is far more than just Twitter and Facebook, and if Twitter is the extent of your participation – then perhaps you have not harnessed the power of social media just yet.

However, even using JUST Twitter as a PR tool can cause some problems.  Here are the top 3 things to think about (and plan for).

(1) Your Public Relations Rep is NOT an attorney.

First and foremost, your PR rep does not know exactly what can and cannot get you in trouble on the legal front in Social media.  And if you are doing PR yourself – unless you are an attorney – you may not know the legal lines involved either.   A simple strategicSocial media move such as getting on Twitter is not going to safeguard you from lawsuits — ask Kim Kardashian who was sued because of a Twitter post she made about the Cookie Diet.

(2) What You Say Matters When You are a “Someone.”

Public relations is all about who you are and what your influence is.  So is libel, defamation, and slander – especially when it comes to lawsuits.  If you are a celebrity, executive, or well-known blogger, something you say on a Social media platform can result in a serious lawsuit.  Make a concise effort to think before you Tweet/post – and think this, “If someone said this about me, would my business or name be harmed?”

(3)  A “No-one” May Not Get Sued – But He/She Can Lose Business.

It’s one thing to post anonymously on review websites – and it’s another thing to put your name next to what you are saying.  While the beauty of Social media is that each person can be a publicly heard opinion – you need to remember who that opinion is going out to, and what the effects will be on you and your own business.  For example – if you run a copy/print business and bash a couple of companies in your Tweets/posts – you might as well write them off forever when it comes to getting business from them.  And if your EMPLOYEE Tweets/posts in the same way… the effect is the same for your company.

It is critical to move forward in your PR efforts while developing a strong and resilient social media policy.  But if you decided to assess, influence, and evolve – your company will benefit from the world of free social media publicity and corporate communication.

By: Benish Shah, Esq. & Sheheryar Sardar, Esq., Sardar Law Firm LLC

For more information, contact:  Sardar Law Firm at sardar@sardarlawfirm.com.

Follow Sardar Law Firm on Twitter:http://twitter.com/sardarlawfirm

Assess, Influence & Evolve

Social Media is akin to the e-mail era:  it is so convenient that it will not fade away and social media law must follow the pace of  social media. The varying forms of social media communication may differ in popularity on and off, but the existence of the social media mediums must become of paramount concern to businesses as they move forward.  Effective corporate communication must incorporate social media, and here are 3 simple steps to help ensure that your company’s social medial lawyer can help you responsibly embrace advances in social media based communication:

(1) Assess

The first step of responsible corporate communication through the social media medium is the involvement of a corporate attorney to understand and analyze the risks to your company through the usage of social media.  Without the involvement of a legal entity, the risks will not be apparent.  A corporate attorney with an understanding of social media related law & risks must assess: (1) how does this company use social media?  (2) do company employees using social media on a personal level create a risk to the company? (3) do company managers create a risk to the company through social media usage? (4) how can the company develop policies and monitoring strategies to avoid potential risks?

(2) Influence

Upon developing a thorough understanding of a company’s social media usage and therisks involved, a social media lawyer would help companies develop a place to influence the company’s social media usage.  Much like the usage of e-mails and instant-message type online discussions, social media usage can be monitored by companies when used on company laptops.  Develop a written company policy that outlines the use of social media through company computers, and by those claiming to represent the company in the online world.

Encourage your employees to be responsible when using social media such as Twitter, Yammer, or Facebook to name a few.  Read through blogs discussing your company or written by your employees.  Comment on interesting blogs or Twitter posts about your company.  Influence the online conversation on various social media platforms.  Embracesocial media by participating in it.

(3) Evolve

Remember that social media is an evolving platform, as are the risks.  With new additions to the social media world, new risks will inevitably arise.  Your company must evolve with these advances and fads, while having a well-hashed out written policy on social media as a whole.

It is critical to evolve while developing a strong and resilient social media policy.  But if you decided to assess, influence, and evolve – your company will benefit from the world of free social media publicity and corporate communication.

By: Benish Shah, Esq. & Sheheryar Sardar, Esq., Sardar Law Firm LLC

For more information, contact:  Sardar Law Firm at sardar@sardarlawfirm.com.

Follow Sardar Law Firm on Twitter: http://twitter.com/sardarlawfirm