Institute For Leadership

Demand for online purchasing is rising significantly in recent decades. This creates a fertile land for enterprises doing business via Internet. Nonetheless, like other types of doing business, owners must comprehend thoroughly or even master in using law in every stage of the company’s development from the establishment of your company to expansion of partners and stakeholders network. Committing a legal issue can be extremely troublesome, complicated and expensive. Thus, by understanding insightfully the online business world you can add more value to your enterprise. These guidelines are helpful for both domestic company and multinational corporation.

Advancements in technology have effectively removed the borders and barriers to global commerce. Nonetheless, to compete effectively you need to leverage new social media, perceive and manage your risks, and act decisively and confidently in legal matters.

To do this, you should have a trusted legal team and other advisors to help adapt and protect your business.

The legal issues affecting online business are significant, and can include federal, state, and local taxation, corporate and securities law, liability insurance, copyrights, and trademarks. Keeping your legal affairs in order can help save the high costs of future litigation. By implementing policies and procedures designed to protect your property rights and information, you will be one step ahead of those that do not. Good practice would include implementing the following:

1) Implementing a process to copyright or trademark your business and its work

2) Verify appropriate use of copyright, trademark, and patents.

3) Plan and document network security measures for Internet and mobile systems. Engage consultants to test system vulnerabilities.

4) Perform regular backups of computer data

5) Establish a database system containing every customer, and others with whom you have a commercial relationship with.

6) Establish controls on who is able to access certain sensitive information

7) Maintain employee confidentiality and noncompetition agreements

Maintain and monitor employee activity on social networking sites to avoid defamation lawsuits

9) Monitor and review website content for compliance

10) Audit of companies policies and procedures regarding computer use once a year

By protecting your company’s identity online you will feel better prepared to compete and better capable of developing strategies that protect the value of your company. Since technology changes very rapidly, these policies may have to be reevaluated and updated every year. Once these policies are in place every employee of your business should be trained and understand these policies. In addition, those in charge of training should be familiar with new technology and updates to existing equipment. It is an ongoing process that, when implemented effectively, can make or break your business.

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