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Legally Protecting Your Web Investment Part I

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Net Watch Article - Legally Protecting Your Web Investment Part I
Part I:  Registering Your Copyright
By:  Steven H. Atherton
www.thedigitallawyer.com


Multinational corporations know the importance of protecting their web investment legally, but most small companies rarely think about the importance of protecting their web investment. Although the reasons for this lapse in judgment are manifold, in my experience the primary reasons boil down to: (1) fear of legal fees and (2) naivete concerning the global marketplace.

With respect to legal fees, I am pleased to report that there are a number of measures you can take, at a surprisingly low price, to protect your investment. As for naivete concerning the global marketplace, I can only warn you to beware. Unlike your local market, on the Internet you will be competing with a wide variety of firms, most of whom you will not know, who may not play by the same rules you do.

Therefore, while the web provides access to new markets you need to take prudent steps to protect your web investment. In this first of a series of articles, I will focus on the value of registering your web site with the U.S. Copyright office. In future articles, I will focus on the importance of protecting other of your intellectual property rights, including your business name, domain name, and trademarks.

Registering Your Web Site

As many of you know, as soon as material is published it is protected under copyright law. Unfortunately, that protection is so minimal that it often proves to be more mirage than reality unless you register your copyright with the U.S. Copyright office. Fortunately, registration is quite simple and inexpensive. The filing fee in most cases is only $30 and the legal fees frequently under $500. The benefits of registration, however, are real and substantial.

Benefits of Registering Your Web Site

Timely registration of your copyright, in the event of infringement, provides the following:

1.  Attorneys Fees. The American rule is that each side pays their own attorneys fees unless there is some common law or statutory exception. U.S. copyright law permits the recovery of attorneys fees from an infringer, only if the copyright is registered.

2. Statutory Damages. One of the most difficult elements to prove, in the event of infringement, is what it has cost your business. Registered copyright holders can claim statutory damages, without having to prove actual damages, of up to $30,000 for each copyrighted work infringed. Moreover, if the infringement was willful, which it often is, the court can award statutory damages up to $150,000!

Whether you pursue litigation or not, an infringer is much more likely to cease and desist its illegal activities, upon receipt of a letter from your counsel, when the infringer (and his or her counsel) know that you have registered your copyright and therefore can recover statutory damages and attorneys fees.

In conclusion, registering your copyright can be an effective, inexpensive means to protect your web investment. Each web site is different, however. Therefore you should consult with an attorney before deciding upon a strategy for protecting your web investment.

[Attorney Steven H. Atherton is admitted to practice in the States of Vermont, New York and Texas. Copyright law, however, is federal and therefore Mr. Atherton can assist you, even if you live in a state where he does not practice. To contact him call 802-485-5595 or email him at satherton@thedigitallawyer.com]