The Basics of Copyright Law

Copyright laws basically grant intellectual property rights and ownership to the creators of non-tangible items such as novels, music, website content and more. It can be applied to anything online – text, art, graphics, photos and music. This can also include software.

Copyright law gives the owner of the material five basic rights. These rights are:

• Reproduction Rights – Only the owner can determine who has the right to duplicate the work.
• Modification Rights – Only the owner has the right to modify the original to create a new work. An example of modification to a preexisting work is if you were to alter a photograph. Unless you own the rights to that photo, you could be in copyright violation.
• Distribution Rights – This concerns the right to distribute copies of the work, whether by selling them or giving them away. This is especially relevant to software developers who make their living by creating and selling software.

These three rights are the most important rights concerning software developers and licensing. The other two rights covered under copyright law are:

• Public Performance Right – Involving the right to perform the material (such as a song or script) to the public.
• Public Display Right – Similar to the Public Performance Right, this right involves displaying any images or video clips to the public.

If you work as a software developer, anything you create is solely yours to distribute and reproduce under copyright law. When you choose to grant permission to others to use the software or reproduce it – by installing it on another computer, for example – you are granting them license. When clients purchase software, they are generally purchasing licenses, not the actual ownership of the software. The ownership still belongs to you, the creator.

A great example of this is purchasing the Microsoft Office Suite for your office. If you have five computers that need the Microsoft Suite, you will purchase five licenses. This will allow you to install the Microsoft Suite up to five times.

For more information on copyright law, read this detailed explanation from contract and legal document experts, Contract Edge.

Legal Protection for Network Service Providers

A Network Service Provider (NSP) works hand in hand with the companies that provide actual internet access. The NSP will structure the flow of the internet access so that all computers/users within an organization are able to access the internet. Network Service Providers are responsible for expanding the company’s infrastructure as their needs grow and ensuring that the data provided from the ISP is easily accessible and readily available at all times.

If a company’s network goes down, it can often times mean a massive loss in revenue due to its employees not being able to fulfill their jobs adequately, loss of intra/interoffice communications and many other issues. As a NSP, you do not want to be held responsible for any downtimes associated with the network infrastructure you provided.

No matter what the scope of your job is, whether you provide network services to small or large businesses, the legal aspects of your contract must be clearly defined. Well written contracts will eliminate any doubt as to who will be held liable should the network go down for an extended period of time and lead to significant revenue loss. Furthermore, making certain that you are insured should a liability suit be brought against you will help to alleviate the financial responsibility placed solely on you as an individual.

It is a good idea, whenever going into a new job as a Network Service Provider, that the contract is clearly defined and that you are adequately insured. No matter who is at fault, if the contract states that you are responsible, you will be an easy target for a company to potentially pin their losses upon.

What is Webhosting??

Website hosting is a type of service that makes websites accessible to the internet. Website hosting companies sell space on their servers that clients can use to put their website on the World Wide Web. Hosting on a server can also be used for data storage.

There are a number of different hosting services available. It depends on the size of the website, with larger websites generally having their own dedicated servers, rather than sharing with other businesses. Most websites online, however, are not big enough to necessitate their own server and thus obtain website hosting services to save money.

Using another company to handle your website hosting is a great idea unless you absolutely need your own server or have the ability to maintain them on your own. Website hosting companies take care of the servers and keep everything running smoothly. This saves business owners time, money and stress that they would otherwise be investing in a server too big for their needs.

Website hosting businesses face a unique set of liability questions that can be circumvented through a well written contract. That way if something unfortunate happens, such as the servers temporarily crashing, the site host is not liable for business the client may have lost in that time frame. Some other points to include in a legal document with a client would be confidentiality agreements, the scope of services, payment methods and other common contractual factors.

Documents to Bring to Your Attorney If Your Web Development Company Is Suing Someone or Being Sued

Unfortunately, there comes a time in almost every business owner’s life where they have to cope with the inconvenient, and often expensive, reality of a lawsuit. Even the most responsible, thorough business owner can find themselves in a situation where a client is unsatisfied or feels that you, the business owner, have cost them money. In business dealings, clients often seek legal recourse as a means to repair any damages.

From the beginning of a business relationship, maintain a constant paper trail. Get everything in writing – approvals, changes, conversations, everything. Most importantly, put your business agreement into writing before any money or services are exchanged, preferably using the appropriate legal document template. Downloadable legal template and software are available online through websites such as ContractEdge.com.

Having physical proof and hard evidence showing what was agreed upon and what actually transpired protects you from the client coming back later and demanding something different or claiming they did not agree to something. This kind of proof is an essential part of the documents you will need to bring your lawyer should someone choose to sue you.

Your lawyer should be familiar with lawsuit cases and will more than likely need the following documents:

·         All communication with the other party (the client, business partner, vendor, etc.)

·         Any legal documents and agreements (independent contractor agreement, web site development agreement,                 etc.)

·         Summons and complaint issued by the other party

·         Any insurance you have (such as professional liability insurance, general liability insurance, etc.)

·         Dates and times of communication – basically a calendar of the events that transpired

·         Any witnesses or employees involved

·         Tax returns and other financial statements

·         Bills or invoices issued to/received by the other party

·         Incorporation documents

 

You can also bring anything else pertinent to the lawsuit such as notes from a phone call or meeting held with the client.

If you have physical evidence proving your point, such as an email where it is clearly stated, more often than not it will be difficult to prove that that did not happen. Taking measures such as getting everything in writing keeps you greatly protected and will save you money, time and long term stress.

Top 7 Provisions Needed in a Staffing Agency Employment Agreement

Staffing and employment agencies are in a unique situation when it comes to employment agreements. Unlike a regular employer-employee business relationship, staffing agencies do business by loaning out their employees to other companies. The employees are technically considered independent contractors and are paid through the staffing agency, not through the client.

This obviously presents some tricky legal issues. How do you protect your agency from poachers? If your independent contractors are performing like they should be, client companies will often want to hire them on permanently. As a staffing agency that needs reliable people you can trust, you want to hold on to your employees as much as possible.

One way to do this is through setting up clearly stated, well written, quality employment agreements and contracts that establish some rules regarding an employee’s working relationship with a client. You can include provisions that prohibit solicitation from both parties (your client and your employee) beyond the scope of the job they were hired to do.

Here’s a list of the ten most important provisions that should be included and clarified prior to the commencement of any work being performed:

1. Scope of Services – clearly define, as specifically as possible, what work will be performed by the employee for the client. If the contractor will be expected to answer phones while at the position, include that in the contract. If it’s not included, the contractor should not be expected to do it.

2. Price and Payment Terms – as with any business agreement, it’s important that the price and how payment will be collected are discussed and agreed upon before any work is performs.

3. Employee Solicitation/Hiring – be very clear that solicitation of contractors will not be tolerated and is in violation of their contract.

4. Term and Termination – identify the time window in which your employee will be working for the client and what the end date will be for work performed.

5. Intellectual Property – who has the rights to any work performed or created by your employee while working for your client?

6. Confidential Information – a non-disclosure agreement never hurts here. Assure clients that any and all information a contractor is privy to during his or her time at the client company is confidential and treated as sensitive information.

7. Limitation of Liability – clarify what your staffing agency and contractors will be liable for. This is a good time for a liability agreement stating what you are directly liable for.

Non-Disclosure Agreements for Software Developers

People that work in or around the software development industry are often privy to confidential information regarding the software they are currently developing. Receptionists, developers, and everyone else in the office has access to information regarding a particular project. With an NDA in place, the software developer can have greater protection for  his ideas.  If it is, he has legal recourse thanks to his non-disclosure agreement.

Having a well-written non-disclosure agreement will provide an extra measure of security to those who develop software programs for a living. Non Disclosure Agreements set conditions for the exchange and use of confidential information and materials between the developer and a business associate.  It requires the other party to hold sensitive information confidential . More importantly, it gives the software developer legal recourse if the software is used illegally or if the project is exposed to anyone other than whom the NDA allows.

Sometimes both parties desire protection of their confidential information.  A mutual non-disclosure agreement is a common way to keep information protected. A mutual non-disclosure agreement protects both parties when they need to share information without the general public knowing. These types of agreements are usually used to outline individual business processes in a confidential manner. Companies for whom the developer is creating software may require a non-disclosure agreement in place so that additional protection is in place to ensure that all those who are privy to the details of the software’s development do not share it with anyone else than those who are directly involved in the project.  There are many scenarios where a non-disclosure agreement can be a vital tool.

Successful Software Development and Intellectual Property

Ideas for great software solutions are born, more times than not, out of frustration.  Whether the current software offering is just not meeting necessary standards or if no software exists for a particular function, you have decided that you are going to attempt to create the next great piece of software.

While your skills at programming and code writing might be on par with the best in the industry, did you know that, unless protected, your intellectual property and hard work are up for grabs as soon as your product hits the shelves.  In other situations, you might be asked to develop particular software for a company or department.  If the proper steps aren’t taken to protect your product, as soon as you hand the information over to your client, it is no longer exclusively yours.

The best software developer in the world doesn’t stand a chance if clients or customers who buy their software are able to copy it and distribute it freely.  This is where it is important to have clearly defined terms of use.  When developing software with a specific client or company in mind, don’t be fooled into thinking that the software will be handled honestly once it leaves your hands.  Prior to any commencement on the new software, make sure that the client signs a contract. Not just any old contract though.  A software developer’s contract should contain these essential points:

•    Clearly defined ownership of intellectual property
•    Limitation of liability regarding the software
•    Project scope (Timelines, Extent of Software Development, Etc.)
•    Payment Structure and Schedule
•    Uses of the Software

While each contract and software development job will be different, the fact remains that protecting your intellectual property, and ultimately, your end product is of the highest importance.  Contracts for software developers as well as independent contractors in other fields can all be found by visiting www.ContractEdge.com.

Using Legal Contracts to Avoid Scope Creep

Scope creep occurs when a project strays too far off task due to changes being made or extras being added beyond the original agreement on expectations. Often a client will see something minor they would like to change and request that it be adjusted. One or two incidents of this are typically not a problem, but oftentimes such occurrences snowball and the amount of time spent working on a project ends up putting you over-budget.

Scope creep can cause difficulties for both the contractor and the client. The contractor will feel stressed and overworked because they are doing more wore than they were prepared to do. The client might feel dissatisfied when they ask for something extra and the client is unable to deliver.

There is one easy, simple solution: procure a well-written contractor agreement that clearly defines the scope of the project. Include what you are and are not willing to do, and where you are flexible.  Clearly stated contracts let clients know what to expect and when. They also detail how work will be delivered and what corrections or changes can be made, if any. This ultimately results in a less stressful life for the independent contractor and more satisfaction and value for the client.

Tips on Starting a New Business

As a successful business owner, I have had some experience with what works and what doesn’t when trying to start a new business. Here’s a brief list of what I’ve found to be the most important considerations:

1. Create a business plan. This is arguably the most important part of starting a new business. A business plan lays out everything your business intends to do in a clear, concise manner. Referring back to your business plan can help you stay focused and on track.
A well written business plan will also improve your chances of securing loans from lenders. Lenders want to see professionalism and organization. Having a business plan shows the lender that you are prepared and will be spending the loan money wisely.

2. Start small and work up from there. When you’re first starting your business, work with as few expenses as possible. If you can work out of your home, do so. Only hire as many employees as you absolutely need. You can adjust as your business grows, but in the beginning, keeping expenses low will keep you out of debt.

3. Make sure you have the right small business insurance. Consult an insurance specialist, or a website such as businessinsurancenow.com to determine what type of insurance your business needs. An insurance agent can help you understand the differences between business liability insurance and errors and omissions insurance, among others.

It’s important to have the proper amount of coverage, buy too much and you’ll just be throwing money away. Buy the wrong type and you’re wasting money and uninsured! Don’t buy any at all and you will be completely on your own to cover mistakes, something a new business invariably makes.

If you need more information or assistance in getting your company started, visit the small business association website.

The Difference between an Independent Contractor and an Employee

Independent contractors and employees are differentiated by three main categories of criteria: behavioral control, financial control and the relationship between parties.

Behavioral control includes factors such as: who determines the number of hours worked (the business or the worker), or who decides how the worker does his/her job. For example, if the work needs to be completed between the hours of 8-5 in an office, that person is probably an employee.

Financial control has to do with who procures the supplies to perform the work. Other things to consider are how the worker is compensated: is it a one-time fee or a weekly salary? Are expenses being reimbursed?

Type of Relationship denotes what kind of agreement is in place regarding work and payment. Is this a one-time service bound by an employment contract, or will the relationship continue indefinitely? Does the employee/independent contractor receive any benefits such as insurance benefits?

The necessity of a contractor agreement or an employment contract can be determined based on these three criteria. When working with or as an independent contractor, there should always be a well-written independent contractor agreement in place to protect both parties.

For more information on the different types of employees, visit the IRS website for exact legal descriptions and tax information.