Internet Legal Issues

You've heard about the Internet. You think it can provide your business with new marketing opportunities. You're ready to take the plunge and go online. Now the legal questions begin: What should you expect in an Internet supplier agreement? Can you protect your Internet information? Can you protect your domain name?

Internet Supplier Agreements

The expense and complexity of maintaining direct Internet access means most smaller businesses especially those not in high tech industries use an internet provider. Internet providers sell individuals and businesses Internet access for a fee under an internet supplier agreement. These agreements generally have two components; the payment agreement and usage agreement.

The fee varies by the number of hours spent online per billing cycle and services used. Under the typical agreement, the user fee ranges from $20. to $150. per billing cycle. Billing cycles, generally, run four weeks or one month. Many providers require payment by credit card to cut billing overhead expenses.

Internet supplier agreements, generally, prohibit any resale of services provided. Users are generally not allowed to create a Bulletin Board Service or similar service to provide others with Internet access.

The usage agreement sets the conditions under which the provider's services may be used. To begin with, you should expect no privacy with regard to the provider. Providers generally reserve the right to inspect client files, jobs and terminal sessions. Providers also generally reserve the right to limit or restrict your use of services. Restrictions, like inspection of files, will generally result from a belief that you are doing something to violate the provider's standards of reliability and security.

While providers try to maintain security, they do not guarantee it. Information stored in the provider's computer is not absolutely safe from unauthorized use and the agreement generally states that there is no guarantee of unauthorized access or use. Therefore, you should be prepared take all necessary precautions to insure the safety of your own information.

Providers should back up information on their computers on a regular basis. The typical supplier agreement will say that information can be lost and the provider cannot be held liable for lost data, files or information stored on their system. You should maintain your own multiple, current backup copies of valuable information.

Supplier agreements often require you to exercise responsible, ethical behavior when using provider facilities and refrain from initiating activities that consume an unreasonable amount of system resources. While these clauses are subject to interpretation, providers include them to prevent the disruption of work of others on the system. Internet etiquette, generally, prohibits chain EMAIL letters or “bulk” EMAIL advetising.

Internet supplier agreements typically carry warnings about unauthorized or improper use. You are not permitted to share your passwords or account access with others. There are, generally, exceptions for household members sharing accounts and businesses assigning “administrative” and “online” users to access provider systems. In any event, the person of record is generally solely responsible for the account and the actions of those operating under it.

Supplier agreements also have clear statements that their services should not be used for unlawful purposes such as illegally or fraudulently obtaining software. You are also generally prohibited from accessing, altering, copying, transferring or removing information, proprietary software or files without the provider's or other responsible party's permission.

The agreements also warn you not use provider facilities to harass others. Harassment can be accomplished in many ways from transmitting offensive, annoying or harassing materials to loading software or data from untrustworthy sources onto administrative systems.

The fact that the Internet is a “public domain” not subject to censorship is generally covered. The agreement states that the provider is not liable for any access to information available on the Internet; limiting access by children is up to you. Providers generally do not attempt to censor Internet materials other than to reserve the right to cancel the account of anyone publishing offensive materials.

Finally, the agreements generally require that you indemnify and hold the provider harmless from liability for any loss or damages resulting from your use of the services. You, on the other hand, will be liable for damage resulting from unauthorized use or use of services in violation of the agreement.

In addition to comparing internet provider prices, packages and services, you should review the agreement carefully. Terms and conditions will vary from provider to provider.

Protection Of Your Materials On The Internet

There has been substantial legal debate as to whether materials on the Internet can be given copyright protection. There is little doubt that making materials available on the Internet is a publication of a work under copyright law. Publication of a work without copyright protection and proper notice can result in your loss of rights to the work. To insure protection of your Internet materials, you should place a copyright notice on the materials.

One mode of Internet use is the home page. Many companies have materials on their home pages that allow Internet users to learn more about their business. In order to protect the right to these published works, the company should add a notice that the work is copyrighted through the use of the familiar copyright symbol. Because of the international nature of the Internet, the words “all rights reserved” should also be used. There is no reason to suspect that proper use of copyright notices will not afford protection for copyrighted work published on theinternet. However, the law in this area is still not fully developed.

Even if a work published on the internet is protected, understand that enforcing the copyright can be very difficult. If material is stolen by another Internet user, finding that person or entity can be very difficult.

Rights in a Domain Name

Internet users are assigned a domain name to distinguish them from other users. Domain names are like a company name appearing in a phone book except that the technology prohibits any two domains from having exactly the same name. Many businesses have trademark protection for their company name or mark. Through registration the company secures exclusive right to use the mark and can prevent other companies from adopting names or marks that are confusingly similar.

Companies on the internet use a domain name, like a mark, that enables consumers to identify who they are. While no two domain names can be exactly the same, they can be confusingly similar. As Internet use increases, companies will want to protect their domain names to prevent the use of names that are confusingly similar. Under the current state of the law, it is not clear whether domain names can be registered.

When a company wants to register a mark, the United States Patent and Trademark Office (“PTO”) reviews the mark to decide if any other registered marks are confusingly similar. If so, the PTO will refuse registration. A mark is confusingly similar if it is (1) similar in appearance, and (2) used on similar goods and services and in the same channel of trade. The problem with registering domain names as trademarks comes from the second prong of the analysis. Some argue that since all domain names appear on the Internet, they are all in the same channel of trade which greatly limits the number of names which could be protected. Others argue that the Internet is not a channel of trade at all, but only a mode of communication and the use of a domain name is, therefore, not a trademark use at all.

The issues involved in domain name registration have not been extensively addressed by the courts. Since the Internet is becoming a more important medium by which information about business is transmitted and received, the courts will likely be forced to confront the legal issues raised by its use.