What Social Media Companies Should Know About the Contract
Sheheryar T. Sardar discusses Social Media companies and their potential contract issues.
Social media has grown exponentially in the last decade, with enterprising companies creating uncontested market space in the online and digital industries. Whether its new search engines or unique services offered to niche markets within the browsing population, social media has transcended all ages, incomes and geographic regions. Due to the fast-paced nature of social media, ambitious entrepreneurs often overlook the need for contracts for their business. While staying ahead of the competition is paramount, creating and maintaining contracts will only enhance your edge.
Before you even start a company, or else plan on developing professional relationships with external agencies, prospective partners and employees, it is critical to understand the laws of contract. When there is a dispute, and often there is at least one during the development phase, all parties will look to the contract. As such, having a lawyer on board from the outset will always be an advantage for your business. Here is a brief list of issues to consider:
- Non-Compete Clauses: you want to protect your business by impeding your partners’ or employees’ rights to directly compete with your business if they leave. This would be framed within a specific time period, limited to a geographic area, but is very important because they possess inside knowledge of your competitive advantage.
- Non-Solicitation Clauses: you don’t want your partners or employees soliciting your colleagues or your customers away from your business.
- Non-Disclosure Agreements: NDAs are no unreasonable, so long as the language in the contract is clear on protecting your right to confidentiality.
- Moonlighting and Loyalty: This may or may not be necessary, depending on the nature of your business. A lawyer could assess its need once you discuss your goals.
- Ownership of Intellectual Property: You may want to protect any processes, templates, systems, or methods created by an employee by retaining any IP rights over them. A contract on the outset will provide necessary protections so that work product created under your business does not ultimately go to a competitor.
- Use, Licensing, Technology Transfer: Social media companies will likely need to outsource its products or services through other digital or online mechanisms, usually other companies. Often, partnerships are created to facilitate such business development. In this context, having contracts to protect the use and licensing of your work product, so that it doesn’t leak or be misused, will make your transitions to the next stage much more efficient. Similarly, if you are interested in commercially exploiting your methods, processes or inventions (Technology Transfer), you will need contracts to protect your financial interests.
Spending a little time on developing a legal structure through contracts, while slightly time-consuming, is a real investment in your social media business. Your business will make or break based on the contract, often when you must make strategic decisions for the success of your business. Retaining a contract lawyer will only enhance the probability of that success.
This article was published by Sunshine Suites, here.
You can follow Sardar Law Firm on Twitter: twitter.com/sardarlawfirm
+ Read more…
E2: Investor Visas
The SARDAR LAW FIRM offers strategic representation to individual and corporate clients in regards to E2 Investor Visas. Contact us at 631.838.0178 to set up a consultation, or email us at sardar@sardarlawfirm.com.
Investment Requirements
Foreign investors who invest a “substantial amount of capital” in a US business, and who will develop and direct the business may apply for the E2 investor visa, if their country of citizenship has the required treaty (Pakistan has this treaty) with the US. Foreign companies whose owners are nationals of a treaty country may potentially petition their employees for the E2 visa. Email us at sardar@sardarlawfirm.com for more information or a consultation.
The investor must demonstrate that he or she has control of the enterprise by showing ownership of at least 50 percent of the business and possessing operational control through a managerial position or other means. The investor must have already invested in the US business or is actively in the process of investing in the business.
The investment must be substantial. The law does not specify a minimum dollar amount to qualify. Instead, “substantial investment” is defined as sufficient funds to ensure the investor’s financial commitment to the successful operation of the E2 enterprise and large enough to support the likelihood that the investor will successfully direct and develop the business. The investment enterprise must be more than a marginal business solely for earning the investor’s living.
The business must a real and operating enterprise. If the applicant is not the principal investor, he or she must be employed in an executive or supervisory capacity, or possess skills that are highly specialized and essential to the operations of the commercial enterprise. Ordinary skilled or unskilled workers do not qualify.
Non-Immigrant Intent Requirement
The E2 visa has a nonimmigrant intent requirement. Nonimmigrant intent means the applicant must intend to depart the United States when the E2 status terminates. However, holders of E2 visas may renew their visas indefinitely as long as they continue to own and operate their E2 enterprise or work for a qualifying E2 business in the case of an employee. Email us at sardar@sardarlawfirm.com or call 631.838.0178 for more information or a consultation.
Application Process
If the investor or employee is inside the US, he or she may apply directly to the US Citizenship and Immigration Services (USCIS, formerly INS) for a change of status, extension of stay, or change of employment without leaving the country.
The E2 category does not require a petition for employment, if the investor is outside of the US. This means the investor or employee may apply for the E2 visa on his or her own behalf directly to a US Embassy or Consulate abroad. The E2 visa may be issued for up to 5-year validity period and may be renewed indefinitely, as long as the applicant continues to satisfy the visa requirements. The actual length of the visa depends on the treaty between the US and the applicant’s country and the consular officer’s discretion.
You should understand that a change of status is not a visa. Once the person leaves the United States, he or she must apply for an E2 visa at a US consular office before returning to the United States. Only a consular office may issue a visa. The USCIS cannot issue a visa. Email us at sardar@sardarlawfirm.com or call 631.838.0178 for more information or a consultation.
+ Read more…
