Posted by permission of Cliff Ennico – author of The eBay Seller’s Tax and Legal Answer Book – Get your copy at www.TaxandLegalBook.com

“WIKIS” AND THE LAW

“I’m widely considered an expert in a particular field, and am thinking of contributing an article to Wikipedia – the online encyclopedia – as a way of promoting my consulting practice.  What are the legal ramifications of contributing to a ‘Wiki,’ and how do I protect myself against liability?”

For those who don’t know, a “Wiki” is a collaborative Website where anyone can contribute content, and edit other people’s content.  Probably the best known “Wiki” is www.wikipedia.org, an online encyclopedia with more than 2,500,000 entries in English.

Here’s how it works:  you write an article (if one hasn’t already been done) and post it on Wikipedia.  By so doing, you agree to Wikipedia’s “Free Documentation License”, essentially waiving your rights under the copyright laws.  If other people see your article and feel they have something to add, correct or contribute, they can “edit” your content, so that over time the article will become longer, more thorough, more fair and balanced, and more up to date than any article by a single author could possibly be.  Likewise, if you feel someone has edited your content incorrectly, you can “re-edit” your content and send e-mails to other contributors explaining why you are doing what you’re doing, and so forth.

Posting an article on Wikipedia can be a terrific way to get exposure for your business.  Wikipedia has done an amazingly good job of search engine optimization – search for any relevant topic on your favorite search engine, and a Wikipedia article is likely to be in the first 10 listings.

But there’s a catch:  because “wikis” are democratic by nature, you don’t have to establish your credentials as an expert to post an article on Wikipedia.  Indeed, anyone can post content on a “wiki”, whether they know anything about the subject matter or not.  And there’s the rub.

To quote from the Wikipedia article on “Wikipedia”:  “Users should be aware that not all articles are of encyclopedic quality from the start, and may contain false or debatable information. Indeed, many articles start their lives as partisan, and after a long process of discussion, debate and argument, they gradually take on a neutral point of view reached through consensus. . . . However, eventually additional editors expand and contribute to articles and strive to achieve balance and comprehensive coverage.”

Wikipedia, and other “wikis”, have adopted policies and procedures to guard against editors whose goal is to distort the truth – called “vandals”.  Most wikis have an online dispute resolution mechanism for conflicting editors, and will bar repeated “vandals” from editing content on the site.

But what if it’s too late?  What if someone edits your article on Wikipedia and does something bad that upsets someone so much that they sue you?  Some examples:

·                                            someone edits your article and posts false and misleading information about another person – a celebrity, a politician, or just an average person – with the goal of ruining that person’s reputation (see the Wikipedia article on “Defamation”);

·                                            someone edits your article and posts embarrassing – but entirely true – information about someone that invades their privacy (see the Wikipedia article on “Privacy Laws in the United States”);

·                                            someone edits your article by “cutting and pasting” someone else’s content into your article ver batim (see the Wikipedia article on “Copyright Infringement”);

·                                            you have enemies, and they deliberately change your content by inserting incorrect or damaging information that makes you look like a fool (see the Wikipedia article on “Personality Rights”).

When contributing content to a Wiki, or editing someone else’s content, the word “partnership” should pop up in your head.  Wikis are by nature collaborative – each article has several or more authors and “editors” – and collaborators usually are viewed as “partners” when it comes to legal liability.

That’s not a good thing, because partners have “joint and several” liability for their acts and omissions – if one partner gets sued, all partners are liable, regardless of the person who actually was at fault (see the Wikipedia articles on “Partnership” and “Joint and Several Liability”).  So if someone sues the authors of a Wiki article because of a false or misleading statement made by only one of the authors, all contributors to that article are subject to the lawsuit. 

Of course, the “innocent” authors of the article will have recourse against the “guilty” author.  This is called “contribution and indemnification” – see the Wikipedia article on “Contribution Claim (Legal)”.  But if the bad author doesn’t have much money, has filed for bankruptcy, has given Wikipedia false data about his or her identity, or is otherwise “judgment proof”, then the innocent authors, including you, will be left holding the bag.

When contributing content to a “wiki”, do your homework well – make your article as comprehensive, fair and balanced as possible to keep the number of “editors” at a minimum, and check your “wiki” contribution at least once each week so that you can catch and correct any wayward “edits” before they get you into legal hot water.

Cliff Ennico (cennico@legalcareer.com) is a syndicated columnist, author and former host of the PBS television series ‘Money Hunt’.  This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.  To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com.  COPYRIGHT 2008 CLIFFORD R. ENNICO.  DISTRIBUTED BY CREATORS SYNDICATE, INC.

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All right you guys – prepare for some big upcoming news….

• eBay will be reporting the earnings for Q4-2007 later today
• we are expecting to see a fee increase arrive along with it
• And, as we have known for quite awhile, Meg Whitman will be stepping down as CEO of eBay and you will be seeing John Donahoe taking over the helm.  This announcement could come this week, but is expected to be made in the coming weeks.  Donahoe, President of eBay’s Marketplaces division, has been ‘groomed’ for the past 2 years to take over the incredible responsibilities that Whitman has done with amazing balance to the eBay community and her shareholders for the past 10 years.  Look for Whitman in her ‘retirement’ to take a more active role in the campaigning of Romney for President.

Additional details will follow later on – just wanted to give you a head up.

AND, for the record…I am very impressed with how Whitman steered eBay during this incredible growth phase.  I would not want a job where I had to walk the tiniest of tightropes of making my shareholders happy, buyers happy, sellers happy AND the people who hired me happy – lol.  I am incredibly excited to see where Donahoe now takes eBay into it’s next phase. 

Donahoe is know at eBay for working incredibly long hours, having a better understanding of what entrepreneurial sellers go through, and is dedicated to shaking things up at eBay.  He has already caused a few tremors with the employees at eBay by weaning them off ALL land-lined phones and making them switch entirely to Skype communications, changing cubicles to make face-to-face communications better and being the lead on the Stub Hub acquisition.  Not to mention, that at 6’5”, he’ll be easy to spot at eBay Live!

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FOR IMMEDIATE RELEASE

Media Contact:

Zachary Heath

Matter Communications

401-351-9503

vertus@matternow.com

bling! it NOW LETS mac users TRANSFORM product IMAGES and boost ebay SALES

See, Click and Transform: Latest Version of Bling! It Grants Individuals and Small Businesses Operating Mac Systems the Confidence and Credibility to Compete on the Global Market and Raise Sales, Click-Through-Rates and Sell Stagnant Inventory

Macworld Expo 2008, Booth #W-4231, SAN FRANCISCO – January 15, 2008 – Vertus, the graphics and imaging software division of Heligon, a technology business specializing in image data interpretation, today unveiled the Macintosh-compatible version of Bling! It, its recently released deep-graphic image-editing tool that quickly and easily transforms product shots to create maximum online sales impact.  Since its initial launch, Bling! It users, even those without any prior image editing experience, have found that the software helps raise the achieved sales price of their products and increases the click-through-rate over standard thumbnail images.  By giving product images a “shot-in-the-studio” look and feel, Bling! It creates images which attract more attention from buyers, helping sellers achieve higher prices for their products and move previously stagnant inventory.  The software is available for live demonstrations throughout Macworld Expo 2008, January 15-18, in the Vertus booth #W-4231.  

By combining complex technology with easy-to-use tools, Bling! It empowers any user to strengthen and embellish product images thanks to capabilities previously available only to seasoned image editing professionals.  With Bling! It, Mac users can unlock their creative potential without having to master complex and intimidating image editing programs such as Photoshop.  With just a few clicks and the guidance of Bling! It’s intuitive balloon tips, users can seamlessly replace a standard image background with a more appealing backdrop and add features such as drop shadowing, highlight effects and logos.  The sheer speed realized with Bling! It enables even the novice user to produce product images up to four times faster than with any previously available solutions.

“Bling! It enables anyone to create high quality product shots capable of competing with studio-shot professional product images.  We’ve received numerous comments from customers that have “Blinged” their product shots, that they have realized as much as a 20% increase in their achieved product price,” said James Carr-Jones, president and CEO of Vertus.  “With businesses of all sizes and industries offering products through e-commerce outlets, the entrepreneur that makes the best impression online ultimately generates the most sales.  Bling! It enables even the most casual seller to optimize potential revenue and increase profits by making products truly stand out from the ever-growing crowd without the need to master Photoshop or other complicated imaging programs.”

For anyone interested in generating supplemental income online or through auction sites like eBay or Amazon, Bling! It provides the ability to create professional quality product shots that rival or surpass the competition.  From the occasional eBay user to the small business looking to improve its website images and compete with larger rivals, Bling! It can improve product images making them standout from the competition, often helping to sell previously stagnant inventory.

“I recently downloaded the software and have been working on my images non-stop since then,” said eBay India Power Seller Runa Laila, who operates the eBay store Hi2k Georgettes, which specializes in Indian clothing and jewelry. “In a rather short period of time, I am already seeing some of my items which were stuck with me for quite a long time getting sold off immediately upon uploading some beautiful photos recreated with the help of Bling! It.”

Bling! It Features

Bling! It identifies and traces the key edges within an image to extract the product from its background, making this once complicated task as easy as painting by numbers.  Users can select from a variety of professional backgrounds available in the Bling! It library or customize one, optimize the shot with a few clicks on the easy-to-use tools menu, and the new professional product image is complete.  Bling! It also automatically optimizes an image size, resolution and data weight (kilobytes), for an e-commerce site or preset online auction sites.

With Bling! It’s “Paint Away Viewer” feature, users see their product shot evolving in real-time.  As the product is extracted and set into the new background, users are able to visualize the final image as it is created.  The “Paint Away Viewer” also shows real-time edits, as users employ various image optimization tools available with Bling! It.  With these tools, users can:

―     Sharpen product appearance without hiding a product’s characteristic imperfections

―     Add drop shadows to provide a depth-of-field to the image

―     Use the “Highlight Brush” to lift the image highlights to create a “shot-in-the-studio” feel

―     Enhance product resolution independently from the background to make the product really stand out

―     Embed a logo to make product shots even more professional

―     Adjust the edge blending between the product and the background to preserve the warm feeling of a sweater or the furry softness of a teddy bear

―     Customize the position, size and rotation of the product relative to the new background with the easy-to-use handling points

―     Optimize the final image for use on various preset e-commerce sites such as eBay or Amazon

Bling! It was created as a cost effective alternative for the online seller and small business.  With a suggested retail price of $49.95, the software is affordable for even the most casual user.

Bling! It can be purchased at http://www.blingit.us.

System Requirements

Previously available for PC use only, the latest version of Bling! It is now available for the Macintosh operating systems.  Minimum requirements are:

―     PowerPC® G4 or G5 or Intel® processor

―     Mac OS X v.10.3.9, or 10.4.9 or later

―     512MB of RAM

―     250MB of available hard-disk space

About Vertus

Vertus is the graphics and imaging software division of Heligon, a technology business specializing in image data interpretation.  Heligon’s groundbreaking technology uses complex algorithms to mimic the way the eye and brain perform visual processing so that

complex shapes and colors can be recognized within images.  Heligon licenses its technology to market leaders in industries including design and graphics, printing and video. More information on Vertus can be found at: http://www.vertustech.com

##

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Posted by permission of Cliff Ennico – author of The eBay Seller’s Tax and Legal Answer Book – Get your copy at www.TaxandLegalBook.com

MAKING MONEY, AND PAYING TAXES, ONE CLICK AT A TIME

(Note:  most of this article also holds true for the big affiliate sites – Popshops.com and cj.com)

 “Do you have any thoughts on the legal and tax aspects of ‘affiliate marketing’ - when you use your website to sell other people’s products through Clickbank or other affiliate sites?  This system creates a link on your website where the customer doesn’t actually see content on your site but goes through it directly to Clickbank’s site and you are paid a portion of the sale for the link to Clickbank’s website.”

There’s nothing new about affiliate marketing – it’s been around as long as the Web itself.  Basically, by becoming an “affiliate” of another website, you become a “sales representative” of that website – you help that website sell their stuff and if they make any money from a customer who clicks on the “affiliate link” on your website, they pay you a commission. 

Websites like Clickbank take this process to a different level.  Think of Clickbank as an intermediary between websites that are looking for affiliates to help sell their stuff (usually digital information products such as e-books), and people who want to be affiliates.  For example, if I had a digital e-book (I don’t, at least not yet), I could become a “Clickbank publisher” and allow Clickbank to sell my e-book, either directly or through its affiliates.

Now, let’s say you fall in love with my e-book and want to sell my book on your website.  You would set up a Clickbank account, tell them you want to sell my book, and create a link to the Clickbank website.  If someone clicked on the “Cliff’s book” link on your website, Clickbank would process the order, collect payment from the customer, pay you your commission, pay me the rest (less Clickbank’s fee, currently 7.5%), handle refunds, issue IRS Form 1099 at the end of each year, and provide other services.  With Clickbank and other similar sites you can offer a whole bunch of other people’s stuff to your customers and get sales commissions without having to lift a finger.  Pretty cool, huh?

But there’s a catch (isn’t there always?).  When doing business with Clickbank or any other affiliate site, the words “drop shipper” should pop up in your head immediately.  Whenever you are selling someone else’s stuff but don’t actually take possession of it, and that someone else handles all of the order fulfillment tasks (the shipping, handling, packaging and so forth), you are a “drop shipper” for legal and tax purposes.  

Full disclosure:  I’m not a Clickbank scholar, and I haven’t studied their website in detail.  But a quick look at their operation leaves me with the following questions, which you should ask if you’re planning to become a Clickbank “affiliate”.

Sales Taxes.  By becoming a “Clickbank affiliate” for one of Clickbank’s “publishers”, you are creating a three way business relationship between you, the information publisher, and Clickbank itself.  This means someone will have to collect sales taxes whenever any of the following people click on your “affiliate” link and order from Clickbank: 

·                    people who live in the same state you do;

·                    people who live in the same state the information publisher is located; and

·                    people who live in Idaho (where Clickbank has its headquarters), Colorado (where Clickbank has an office), and any other state where Clickbank has a physical location or “nexus” for tax purposes.

Will Clickbank keep track of this, by charging the customer sales tax and remitting it to the appropriate state tax authority?  Or is that your responsibility (or the publisher’s)?

            Legal Claims.  Let’s say someone clicks on your “affiliate” link, downloads my e-book from Clickbank’s website, and discovers to his horror that I’ve invaded his privacy by disclosing all the lurid details of his private sex life.  Clearly, as the publisher of this e-book I am legally responsible for its content, and will have to indemnify Clickbank (defend the lawsuit at my own expense, and pay the judgment if the customer wins) in case the offended reader sues them.  But where do you, the poor “affiliate”, stand in all this?  Since the reader ordered the book from your website, you are in the “chain of sale” and may well be sued along with the rest of us.  Is anyone indemnifying YOU if that happens?

            “Pyramid” Schemes.   Clickbank allows its “affiliates” to set up their own “affiliate” programs where other websites (let’s call them “sub-affiliates”) can create a link to the affiliate’s website which automatically links to Clickbank’s website (getting dizzy yet?), with everyone in the upstream affiliate “chain” getting a piece of the purchase price each time something is sold. 

If these programs aren’t set up properly, there’s a risk that you will be creating an illegal “pyramid” scheme where people get commissions for bringing on board sub-affiliates who aren’t actually selling anything.  Make sure a good lawyer helps you set up your “Sub-Affiliate Agreement” to make sure you’re not caught between a rock (angry sub-affiliates) and a hard place (Clickbank and its legal team).

Cliff Ennico (cennico@legalcareer.com) is a syndicated columnist, author and former host of the PBS television series ‘Money Hunt’.  This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.  To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com.  COPYRIGHT 2008 CLIFFORD R. ENNICO.  DISTRIBUTED BY CREATORS SYNDICATE, INC.

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