November 13 2008
The informationlaw.com Newsletter -

Recent Technology & Internet Law Developments
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In This Issue
If you hold a trademark, you can't sleep on your rights
COURT UPHOLDS THE VALIDITY OF A CLICKWRAP AGREEMENT ENTERED INTO WITH MINORS

Most state laws provide that a contract entered into by a minor is voidable under the grounds he or she is not competent - or that he or she does not have the legal capacity to agree to its terms.  So what happens when a minor agrees to your website's terms of use?  Are they bound by the terms?

In a recent decision, A.V. v. iParadigms, Civ. Act. No. 07-0293 E.D. Va., March 11, 2008, the U.S. District Court for the Eastern District of Virginia held that the clickwrap agreement to which the plaintiffs assented when submitting their papers to the plagiarism-detecting program, "TurnItIn", was valid and enforceable, despite the fact that the plaintiffs were minors at the time of entering into such agreement.

TurnItIn is a plagiarism detection program. Papers submitted through TurnItIn are compared with other papers and sources found in the Turnitin.com database, providing teachers with an assessment of the originality of the submitted papers. Students using TurnItIn must sign a user agreement pursuant to their use of the Website. Failure to consent to this agreement will bar students from submitting their papers through TurnItIn.com, which can compromise their chances of receiving a passing grade.

A number of Virginia and Arizona high school students filed suit against iParadigms, the provider of TurnItIn, claiming that the program infringes upon students' copyrights in their respective papers, and that the clickwrap agreement to which the students must consent as part of the registration process is invalid.

While the copyright infringement question garnered prolific media attention, an equally relevant and less publicized legal question concerned the validity of the clickwrap agreement. With respect to this claim, the students claimed that the TurnItIn agreement was unenforceable in accordance with the Virginia law, which stipulates that a contract entered into by a minor is voidable once the minor reaches the age of majority. While the court did not contradict this doctrine, it nevertheless held that because the students derived benefits from the TurnItIn contract, they were also bound by its limitations and prohibitions. Received benefits cited by the court included the students' ability to receive grades from their teachers, thereby providing an opportunity to maintain good standing in their classes, as well as the students' ability to bring this lawsuit.

 

LESSON LEARNED:

The way your website's terms and conditions are structured and accepted by any minors to your site is crucial to having them enforceable.  The contract must be "complete" and both parties must fulfill their obligations in order for the terms to potentially be enforceable.  Contact us for a review of your website's terms and conditions.

DVD Cover_2 The Legal Considerations of Starting an Online Business- Now on DVD

In today's economy, more and more people are considering launching their own Internet businesses.  But a good business idea is not enough - understanding the legal issues involved in operating a business online is crucial.  In this instructional DVD, attorney Dan Pepper walks you through, step by step, practical, easy to understand tips you can use IMMEDIATELY to get your Internet business off the ground.  For more information and to see a preview, visit informationlaw.com or visit Amazon.com to order your copy!

Pepper Law Group, LLC, provides strategic advice and sophisticated legal services to businesses, entrepreneurs, and entertainers in the areas of technology law, intellectual property, Internet law, entertainment law, general corporate counsel, and privacy and security law.

Pepper Law Group, LLC
21 E. High Street, Suite D
Somerville, NJ 08876
informationlaw.com
908.698.0330 (voice)

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