buy an online business

How to Buy an Online Business and Receive More Profit

Do you notice an online business you would like to buy? Before you make an offer, know how to buy an online business. Here are tips to receive more profit.

Wondering how to make more money without doing more work? You might want to buy an online business.

Every 30 seconds, over $1.2 million dollars is generated by the e-commerce world. With numbers like this, it’s easy to see why buying online businesses is so lucrative.

However, anytime you invest your money in something new, it pays to know exactly what to expect and what the best approach is going to be. That’s what we’re here for. In this guide, we’ll break down exactly what you need to know to buy and make money from a successful online business. Keep reading, and get ready for a whole new world of income opportunities.

Why Buy an Online Business?

Maybe you’ve considered becoming an entrepreneur. You could build yourself a brand-new business from scratch.

You’ll need to find the perfect niche, research your target audience, build a website, create great content, and figure out the best marketing approach. Don’t forget your social media presence, and creating actual products or promoting affiliate products. The list goes on and on.

Even with all this work, it will take some time for your online business to start making money. For months or even years, you could be sinking funds into the project while waiting for it to become profitable. But then again, you could bypass that whole process and buy an online business that’s already profitable instead.

How to Choose a Quality Internet Business for Sale

When you buy an online business, you’re not just purchasing a website. You’re buying a fully functional business that already has customers and products. You’re buying marketing methods that have been proven to get new leads and sales. You might also be buying a social media presence, ad campaigns that are already going, or even employees and assistants.

Once you buy it, you’ve taken over. You can keep letting it run the way it’s already running, or you can make some changes to try to get more profits. For example, maybe you see something the current management isn’t doing that could help get more sales. After you purchase an online business, it’s yours to do whatever you want with.

Look at the Track Record

While looking at online businesses for sale, make sure to check the track record of profits and sales before you buy. See the financials for yourself – don’t rely on what the seller says.

However, you shouldn’t put your money toward an online business just because it makes a lot of money. Although the profits are important, you also need to be sure to buy a company in a niche that you’re interested in. This will ensure that you’ll stay committed to it in the long run. Plus, if you have an interest in the niche, you’re more likely to be on top of relevant industry changes.

Consider Training

When you buy the business, you shouldn’t have to figure out how to run it. Most sellers include a training in the purchase to show you how it all works. This lets you take a shortcut around most of the work that goes into building a successful business. The company you buy should already be running well – you just need to learn how to do it yourself.

Weigh the Price

Of course, the up-front cost of buying an established online business is higher than the costs of starting one yourself. Although you’re almost certain to save money in the long run, you’ll have to consider if the cost of buying is worth circumventing all the startup work.

The more successful the site, the more you can expect to pay. You can pay tens or hundreds of thousands for a lucrative site. However, small online companies can be found for hundreds or thousands of dollars, too.

To figure out a fair price to pay, try multiplying the business’s annual profits by two or three. Don’t forget to look at whether or not you’re getting a good domain name, assets, branding, lots of site traffic, a strong social media presence, and a good email list in the deal.

In addition to those factors, you should look for an online business that’s growing, to maximize your investment. The best businesses to buy don’t hinge on a single product – they have multiple income streams. They should also attract traffic from a number of different sources.

Look for in-place marketing systems, and revenues that stay consistent across months. If these factors are all present, you know your money is going to go a long way.

Where to Find Online Businesses For Sale

There are a lot of good e-commerce sites you can buy, and there are quite a few places you can look for them, too.

However, no matter where you find the site, you’ll want to be sure to do your research. Just because it’s listed on a reputable source doesn’t mean the site itself is high quality.

Your first step is to decide on the niche you want to target. Then, you can look up niche-specific online marketplaces where that kind of business is for sale. On these marketplaces, you can quickly see the stats for hundreds or thousands of businesses, making it easy to compare. Sites like Flippa and Shopify are some of the most popular marketplaces, but there are plenty more.

When you see one you like, check it out for yourself. If everything looks good, message the owner through the online marketplace for next steps. Ask any questions that will help you make your decision. If the seller is legit, they should answer your questions to the best of their ability.

Ready to Buy an Online Business?

When you buy an online business, you’re not just buying the current profits and customer base. You’re buying the potential for growth, and making an investment in your future.

Owning an online business – or a few – is one of the best ways to set up income streams that you can rely on for years to come. However, you’ll need to protect those investments, too. Wondering how to keep your money safe? Check out our guide here.

If you’re considering buying an established online e-commerce business, contact the E-commerce Attorneys at Revision Legal today using the contact form on this page, or call us directly at 855-473-8474.

data breach statistics

Top Data Breaches of 2018: Hackers Find New Methods

We periodically update this post with recent data breach statistics. Now that we’re into 2018, it’s time to look at the top security breaches in 2018, plus review 2017 and previous years.

At Revision Legal, we know that cyber-attacks are a constant threat. The number of data breaches is large and the amount of customers affected is staggering. Data breaches are bad for business and can be even worse for customers.

January 2018: 115 Cyberattacks

Winner: Health South-East RHF, a large healthcare management organization in southeast Norway — 2.9 million patients

On January 8, 2018, hackers or a group of hackers broke into the computer systems of Health South-East RHF, a healthcare organization that manages hospitals in Norway’s southeast region.

The hackers potentially stole — the extent of the theft is still undetermined — patient information on 2.9 million people, which is about half the population of Norway.

The information accessed included all electronically stored patient information including names, addresses, insurance providers and more. See report here.

Read more

how to claim a domain name

How to Claim a Domain Name and Secure Your Website URL

How to Claim a Domain Name and Secure Your Website URL

Did you come up with your company name and are working on your website? Reserve your name before someone else takes it! Here’s how to claim a domain name and how to secure it.

Coming up with a domain name for your website can be confusing and time-consuming. Some people coin domain names from their names, but it does not always work well for businesses.

Once you have decided on a decent name, you need to claim it to prevent anyone else from taking it. You also need to protect it from possible disputes, trademark violations, and domain squatting.

The following guide on how to claim a domain name should help you understand the process.

Claiming a domain name requires strategy. Observe the following practices to invent an appropriate URL for your website.

1. The Name Should Reflect Your Interests

Your website will become your ground for implementing all your digital efforts. Therefore, selecting a domain name which communicates your product is important.

When developing a domain name, you should think about how the name looks and sounds. Avoid making the name too long for your audience to remember. Furthermore, some platforms like Twitter limit the number of characters.

The domain name has to appeal to the market and evoke the desired inference for it to attract traffic to your website. A strategy which works for many businesses is forming a name from their brand. Such names promote the awareness and recognition of one’s brand on the market.

If you haven’t developed a brand yet, you can incorporate a witty call to action in the domain name. The name should draw the attention of the desired audience at a glance.

2. Choose a Suitable Domain

The choice of a domain may depend on the type of website you want to register. Most of the top level domains (TLD) are suitable for specific niches, but some are for general websites. Here are some examples of TLDs and their intended application area.

.Com

Initially, the purpose of .com was to imply the commercial intention of a website. Today, the domain is widespread in various fields. Most people registering websites go for .com perhaps because of the domain’s popularity.

.Net

This domain is predominant in networking technology industries. Some companies which use .net are network operators, advertising agencies, and Internet service providers.

.Org

This is another TLD which has veered off the original focus on nonprofits. Nowadays, you will find commercial enterprises with URLs containing .org.

.Country

Domains which contain country names are suitable for local businesses, organizations, or communities. They are useful in targeting a regional market. A good example is .us.

.Info

One purpose of this domain was to reduce the preference of .com among entities across the globe. It’s common with various newspapers and information portals.

3. Identify a Domain Name Registrar

The work of a domain name registrar is to reserve and manage internet domain names. Some DNS hosting providers also facilitate the registration of domain names. Registration of your preferred name is critical, and you should do it fast before someone else does it.

How to Secure Your Website URL

Domain security is vital not only for yourself but also for those who visit your website. People are aware of the risk of cyber-attacks. They are worried when opening websites to avoid becoming victims of hacking.

Some domain owners do not employ strict security measures when developing their website security policies. Unfortunately, poor domain management can result in irrevocable damage and a poor reputation for your business.

A hacker can alter the accessibility setting of your website if they can access your domain name control panel. Losing the domain name of your website can bring your business to a standstill. You can take several measures to safeguard your domain name from loss or theft

1. Secure Your Accounts

Your passwords should be strong to prevent unauthorized access to your system. The key here is to use random characters which are hard to guess. A password generator can help you create secure passwords.

Don’t trust anyone with your account credentials. Consider investing in two-factor authentication for the access of your account. When someone enters the password, for example, the system can issue a code via SMS to verify the identity of the person.

2. Use Antispyware Program

Invest in an antispyware software and keep it updated to prevent key-logging programs from stealing your usernames and passwords.

All applications in your business should be up to date. Outdated software is a soft target for malware and viruses and can lead to the theft of data.

3. Enhance your Domain Privacy

Website owners must provide accurate contact information about themselves to the registrar. The domain registrar forwards this record to WHOIS. Your data at WHOIS is available to the public.

Thieves steal such information and impersonate website owners in an attempt to transfer their domains. You can go for private domain registration to avoid revealing your contact information. Your domain registrar can offer privacy by replacing your information with theirs.

4. Update Your Registration Information

Ensure that your domain name contact information with your registrar is accurate. Updated details will enable your registrar to inform you if there is some suspicious activity targeting your domain name. Your infrastructure should enable you to view your registrar’s notifications immediately.

5. Secure Your Website

Internet users are confident when opening secured websites since they pose a reduced risk of leaking customer information. Such sites have URLs starting with https. Your site should have an SSL (or TLS) certificate to protect your audience.

6. Use The Domain Lock Service

Most domain registrars provide a domain transfer lock which prevents your domain name from getting transferred without your knowledge. You can ask your registrar to provide a registry lock even if it may cost you some amount. This should prevent an intruder from making changes to your DNS information without your authorization.

How to Claim a Domain Name – Final Thoughts

Domain name security is perhaps not a priority for some website owners. However, it should be one of the first considerations to make when opening a website given the rate at which cyber-crime has risen. Hackers are becoming clever by the day, and you have to avert them before they strike.

New website owners should learn how to claim a domain name before launching their sites. They must also stay abreast of new internet security trends to keep their URLs secure. They should deter hackers with a combination of security measures to seal all loopholes.

Protecting your online brand, website, reputation, and domain is important If you need help with legal issues, an internet lawyer can help.

Contact Revision Legal’s attorneys with the contact form on this page, or call us at 855-473-8474.

how to sell your business

How to Sell Your Business: 6 Mistakes to Avoid When Selling Your Online Business

Did your online business receive success, and now major corporations want to buy your business? Before you agree, know how to sell your business and avoid these 6 mistakes.

Do you own an online business that’s turned into a massive success over time?

If so, you might currently be fielding offers from major corporations that want to purchase your business and make it even bigger than it already is. Many of those offers might be very lucrative and could potentially change your financial situation and, to a larger degree, your life.

But before you decide to accept an offer from a buyer, you need to know how to sell your business. More specifically, you need to know how to avoid making a costly mistake that could come back to bite you later.

Here are 6 common mistakes that you’ll want to avoid when selling your online business.

1. Failing to Plan Ahead for a Future Sale

Many online business owners make a very crucial mistake long before they ever agree to sell their businesses. They fail to plan ahead for the possibility of a sale and end up paying the price for it.

From the moment you start running your business, keep accurate records and organize all the files related to your business. Consider what you might need at some point down the line if you ever decide to sell your business.

Selling an online business is a long process that involves digging through records and taking a good, long look at a business’ history. If your files are disorganized and all over the place, it could delay a sale or even put the kibosh on it.

2. Waiting Entirely Too Long to Sell

Your online business is your baby. You don’t want to sell it to just anyone, and you also don’t want to sell it when there’s still a chance for it to grow and become so much more profitable.

That’s all very understandable. But at the same time, you also don’t want to wait too long and miss out on the chance to sell your online business for top dollar.

You could end up missing out on a big payday if you put off selling your online business because you’re too attached to it. That doesn’t mean you need to jump at the first offer you receive. But it does mean you should carefully consider any offers that come in on it, even if it’s not technically on the market.

By taking this approach, you’ll avoid missing out on a small window of opportunity that could net you hundreds of thousands, if not millions, of dollars.

3. Picking the Wrong Broker to Handle a Sale

If you’ve never gone through the process of selling an online business on your own, you probably don’t have the first clue about how to sell your business.

You will, therefore, need to bring in a broker or a consultant who can help you walk through everything. For a fee, they’ll help sell your business to the highest bidder and get you a great return on the original investment you made in your company.

At least, that’s how things should work out. But unfortunately, far too many online business owners choose the wrong broker to handle a sale and end up losing out on money in the end.

Find an experienced broker with a clear plan in place for getting you maximum value for your online business. They should be prepared to do whatever it takes to ensure you’re happy with the entire selling process.

4. Choosing Not to Market Your Online Business to Buyers Yourself

While your broker or consultant should technically work on your behalf to promote your business to buyers, that doesn’t mean you should just hang back and do nothing.

No one–and we do mean no one–knows your online business like you do! So get out there and help sell it to anyone who might be interested in buying it. Allow the passion you have for your business to drive you as you work to make a sale.

This doesn’t mean you should step on your broker’s toes or go overboard when it comes to marketing your business. You could actually bring the value of your business down if you come across as looking desperate to sell.

But this is your business, after all. Do whatever you can to encourage buyers to make better offers than the ones that are coming in.

5. Putting a Price Tag on Your Business That’s Too High or Too Low

How much is your online business actually worth at the moment?

That’s a tough question to answer. But it’s a question you have to contemplate as you prepare to sell. If you attach a price tag to your business that’s too high, companies won’t be interested in it, and if it’s too low, you’ll miss out on making as much money on it as you should.

Use your broker’s knowledge and your own research to generate a price that falls somewhere in the sweet spot. You want to come up with a price you’re happy with for your business.

6. Agreeing to Sell Your Business to an Inexperienced Buyer

Once you sell your online business, it’ll be out of your hands.

But you will always have a connection to it. And in some cases, people might even associate the business with you.

That means you shouldn’t just sell your business to anyone. Look for a qualified buyer who has the experience it takes to move your business up in the world.

Try talking to those interested in buying your online business so that you can get a sense of what they plan to do with it. You won’t have much say in how they actually move forward. But it’ll be nice to gauge how you’re business is going to grow once it’s under new ownership.

Learn More About How to Sell Your Business Today

The only real way to learn how to sell your business is by actually doing it. You’re inevitably going to make a few small mistakes along the way. But it’s important to avoid the big ones that could cost you.

If you need help selling your business, obtain services that are designed to make online business sales a breeze. You’ll feel more confident in the decisions you make when you have a helping hand. Contact Revision Legal’s attorneys with the contact form on this page, or call us at 855-473-8474.

ecommerce fraud

How to Prevent eCommerce Fraud and Protect Your Online Store

Half of eCommerce businesses fall victim to eCommerce fraud, costing up to hundreds of thousands of dollars. Here’s how to protect your business.

You think your e-commerce business is going well. You watch the sales roll in, your shipping process is running well, and you’re excited to check your bank account. When you do, though, you realize you’ve made far less than you thought you had. As you investigate, you find out that chargebacks from credit card companies are the problem.

This story is all too common among e-commerce businesses. E-commerce fraud takes a chunk out of their profits without them realizing it. On top of your bottom line, a high chargeback rate also discourages credit card companies from working with you.

If you’re ready to step up your business’ protection, get the lowdown on e-commerce fraud here.

What is E-Commerce Fraud?

The term “ecommerce fraud” can describe a few different things.

One type of ecommerce fraud occurs when someone uses a different person’s account or credit card to make a purchase on your site.

Sometimes this happens when the person gets access to the victim’s account on your site so they don’t need to enter credit card information. Another type of e-commerce fraud is a data breach, which is when someone hacks into your database to steal your customers’ data.

In this article, we’re referring to the first type of e-commerce fraud. In many cases, the customer notices the fraudulent charge and alerts their credit card company. The credit card company reverses the charge, and you lose the money they paid you.

Customers often don’t notice fraudulent charges until weeks or months later. If you’ve already shipped a product when the chargeback occurs, you’re out the cost of the product.

Tips to Prevent E-Commerce Fraud

If you aren’t careful, even small e-commerce fraud purchases can add up and cost you a bundle. To protect your business, follow these tips:

1. Adhere to PCI Standards

You should already be doing this, but it’s so important that it’s worth stating. The Payment Card Industry, or PCI, has security standards for every e-commerce company to follow.

These standards will also go a long way toward making your transactions more secure. They also have direct consequences, though. If you don’t adhere to PCI security standards, you’re vulnerable to lawsuits. Credit card companies may also decline to work with you, bringing your business to a fast halt.

2. Use the Address Verification System

The Address Verification System, or AVS, is an existing tool to help you secure your business. The AVS verifies that the customer’s billing address matches the one their credit card company has on file.

Running a customer’s payment information through the AVS is one more safeguard against e-commerce fraud. The system is already in place, so you can give big rewards from the minimal effort it requires.

3. Require CVV Codes for Purchases

A credit card’s three-digit or four-digit CVV code is an important part of e-commerce security. While online databases can store a customer’s credit card number and billing address, they can’t store the CVV code.

If you require the CVV code for online purchases, it’s unlikely that the data is stolen. It seems like a small addition to your payment process and it is, but it goes a long way in preventing fraud.

4. Set Tight Password Requirements

We’ve all set up an online account and become frustrated with restrictive password requirements. At the cost of a small inconvenience, though, you’re cutting down on your risk of e-commerce fraud.

Tightening your password policy protects your customers as well as your business. A smart password policy can require certain types of characters in your customers’ passwords so the passwords are harder to hack.

5. Look for Red Flags

There are certain red flags that a purchase might be fraudulent. Keeping an eye out for these red flags can help you detect fraud and block the transaction. The key signals include:

  • Inconsistent billing or shipping information
  • Unusual spending patterns
  • Purchases from unusual IP addresses (like an IP address in a different country than the customer’s typical location)

It’s not reasonable to comb through every purchase for these risk factors. Instead, set up automated alerts in your system to detect these red flags. You can instruct the system to decline the transaction or to alert you so you can verify the purchase before shipping the merchandise.

6. Don’t Ignore Software Updates

Most e-commerce sites use various types of purchased software instead of a customized system. If you’re using plug-ins or any other type of software, keep up with updates promptly.

In many cases, these updates are how the developer patches security holes. Even if security isn’t noted in the update description, it may be a part of the update, so install it as soon as possible.

7. Monitor for Chargebacks When They Happen

You can’t prevent 100% of ecommerce fraud. You can, however, minimize the damage it can do.

Set up your system to alert you in the case of a chargeback. If the chargeback applies to a purchase you haven’t shipped yet, put a hold on the shipment until you resolve the issue. If the purchase is, in fact, fraudulent, you can cancel the order.

8. Hire a Law Firm That Knows eCommerce

If you’re struggling with ecommerce fraud, it may be time to bring in some professionals. Look for a lawyer who can advise you about preventing fraud and about your options for legal recourse.

Remember that not all lawyers are experienced in the area of e-commerce law, so look for someone with this area of expertise.

Keeping Your E-Commerce Fraud to a Minimum

Running a successful e-commerce business is a complex endeavor, and it gets more complicated when you take criminals into account. Between chargebacks and a damaged reputation, e-commerce fraud takes down even an established online business.

Keeping up with Internet laws can lower your costs and protect you from larger problems down the line. The fraud prevention tips above are a start. For more tips for your e-commerce business, check out our legal tips blog.

If your online store has been a victim of e-commerce fraud, it’s time to talk to attorneys that can advise you about preventing fraud and about your options for legal recourse. Contact Revision Legal’s attorneys with the contact form on this page, or call us at 855-473-8474.

trademark infringement test

Is Someone Illegally Using Your Trademark? The 8 Factor Trademark Infringement Test

A court will apply the “likelihood of confusion” test in a trademark infringement suit. This is actually an umbrella term for several tests employed by the various federal circuits. However, most courts use a group of similar factors to assess confusion. The court will analyze and weigh each factor to determine if a consumer, in the marketplace context, is likely to be confused by the two marks. For this reason, the trademark infringement test is highly fact-intensive and each factor may be accorded different treatment depending on the case.

Here is a look into the eight-factor test applied by the 6th Circuit.

THE 8-FACTOR TRADEMARK INFRINGEMENT TEST

1. STRENGTH OF THE SENIOR MARK

The senior trademark is the one that was registered first or used first. The more distinctive is the senior mark, the more protected it is. A court will measure distinctiveness along the following spectrum:

A). Generic

  • Definition: Words or symbols that describe the product itself, rather than distinguish between competing versions of the product. A trademark can be rendered generic if consumers begin to use the mark as the generic name of the entire product group (like “aspirin”)
  • Strength: Never distinctive
  • Example: E-mail (no trademark)

B). Descriptive

  • Definition: Words or symbols that merely describe the ingredients, qualities, features, purpose or characteristics of a product.
  • Strength: Distinctive only if the mark has acquired secondary meaning. Secondary meaning indicates that although the mark is on its face descriptive of the product, consumers recognize the mark as having a unique source. Registered marks with incontestable status will be presumed to be at least descriptive with secondary meaning.
  • Example: Windows (trademarked because it has a secondary meaning)

C). Suggestive

  • Definition: Suggestive trademarks suggest qualities of the underlying product, such that it requires imagination, thought, and perception to determine the nature of the product in question.
  • Strength: Inherently distinctive
  • Example: Playstation (trademarked because it suggests that it is a videogame device)

D). Arbitrary

  • Definition: Arbitrary terms are names that exist in popular vocabulary, but have no logical relationship to the products for which they are used. Whether a word is arbitrary or not has everything to do with the context in which it is used. The pairing of the mark with the particular category of product should appear to be random.
  • Strength: Inherently distinctive
  • Example: Apple (trademarked because computers bear no relation to the actual fruit)

E). Fanciful

  • Definition: Terms that are invented for the sole purpose of serving as trademark and have no possible association with the product for which it is used.
  • Strength: Inherently distinctive. Infringers of these marks are hard pressed to provide any explanation for their use the mark, leaving the impression that the real reason was a blatant attempt to trade off the goodwill generated by the owner of the trademark.
  • Example: Xerox (trademarked because the word has no meaning outside of this context)

2. RELATEDNESS OF THE PRODUCTS

Relatedness does not mean that the products are in the same broad industry. Rather, it means that the two products have the potential to be connected in the mind of the consumer. Each case typically fits into one of the following three categories (and the weight given to the factor will change accordingly):

  • If the products compete directly then confusion is likely if the marks are sufficiently similar.
  • If the products are somewhat related but not competitive, then confusion will turn on other factors.
  • If the products are totally unrelated then confusion is unlikely.

3. SIMILARITY OF THE MARKS

This is a factor that the courts usually accord greater weight. The court will look at the pronunciation, appearance, and verbal translation of conflicting marks. It will look to see if the given mark would confuse the public when viewed in isolation. Also, the mark will be viewed in its entirety, not by its individual features.

4. EVIDENCE OF ACTUAL CONFUSION

The existence of actual confusion is direct evidence that the products in their actual market context have similarities sufficient to create confusion. This factor will only be weighted heavily when there is evidence of past confusion or when the particular circumstances indicate such evidence should have been available. Nevertheless, isolated instances of actual confusion after a significant period of time of concurrent sales or extensive advertising do not always indicate an increased likelihood of confusion and may even suggest the opposite.

5. MARKETING CHANNELS USED

A court will assess the similarity of the marks in light of the way they are encountered in the marketplace and the circumstances surrounding their purchase. Evidence may include the relevant market the two products are sold in, the type of business the marks are used for, the methods of advertisement employed by the two parties, and the location that the respective products can be found at stores.

6. LIKELY DEGREE OF PURCHASER CARE

Generally, when analyzing this factor in a trademark infringement test, a court will apply the standard of the typical buyer exercising ordinary caution. However, if a buyer has expertise or is otherwise more sophisticated with respect to the purchase of the product at issue, a higher standard is proper. Similarly, when products are expensive or unusual, the buyer can be expected to exercise greater care in her purchases. The ultimate significance of a given degree of care, however, often will depend upon its relationship with the other seven factors.

7. THE INTENT OF DEFENDANT IN SELECTING THE MARK

If a party chooses a mark with the intent of causing confusion, that fact alone may be sufficient to justify an inference of confusing similarity. Intent is relevant because purposeful copying indicates that the alleged infringer believes that his copying may divert some business from the senior user. Direct evidence of intentional copying is not necessary to prove intent. Rather, the use of a contested mark with knowledge of the protected mark at issue can support a finding of intentional copying.

8. LIKELIHOOD OF EXPANSION OF THE PRODUCT LINES

A strong possibility that either party will expand his business to compete with the other or be marketed to the same consumers will weigh in favor of finding that the present use is infringing. A geographic expansion or an increase in the types of products offered can be relevant.

A finding that the parties will not expand their markets significantly, however, does not address the ultimate issue of likelihood of confusion. Thus, an affirmative finding will provide a strong indication that the parties’ simultaneous use of the marks is likely to lead to confusion, while a negative finding is not a strong indication to the contrary.

Contact a Trademark Infringement Attorney

If you believe a competitor is infringing on your trademark, or you’ve received a cease and desist letter from a competitor, contact the trademark infringement attorneys at Revision Legal with form form on this page, or call us 855-473-8474.

Continued Reading

  1. How Strong is Your Trademark? [Infographic]
  2. Secondary Meaning of Trade Dress
  3. Trademark Priority: Risks of Too Much Secrecy
  4. Grounds for Trademark Opposition and Cancellation Proceedings

Editor’s Note: This blog post was originally published in June, 2017. It has been updated for quality and comprehensiveness.

medical marijuana business

Medical Marijuana Business Formation: What You Need To Know

This is part 1 of 10 of Revision Legal’s guide to setting up a Medical Marijuana business in the State of Michigan.

This article provides an overview of issues you will need to address for medical marijuana business formation.

Michigan’s Medical Marijuana Facilities Licensing Act (MMFLA) sets a licensing framework for the growing, processing, transporting, testing, and selling of marijuana. With this Act, Applicants for licenses can now form corporations and limited liability companies (LLC) to hold these licenses.

Forming an LLC is relatively easy. Forming them correctly and understanding how they work? -that is more difficult.

Limited Liability – Keep It

The main benefit of forming a corporate entity is obtaining limited liability. What this means is the business, rather than its shareholders or members or you, are liable for the corporate debts. With incorporation, you protect personal assets from business liabilities.

However, it is possible to lose this protection. Specifically, a creditor could “pierce the corporate veil”.  As a result your personal assets could be in danger if you do not understand the basics of how limited liability works.

The most important thing to remember is that incorporation should not be abused. For example, if you use your business as a sham or a fraudulent operation, then you can lose your protections. This can happen when business owners mix personal and business funds, fail to keep sufficient records, or become limited by operating funds.

Internal Organization – Do It

Your new Medical Marijuana business needs rules of operation as part of its formation.

Typically, these rules are put together as an operating agreement (for an LLC) or bylaws and a shareholders agreement (for a corporation). These documents set internal policy and procedure for several important issues. Examples of these issues include voting rights, the impact of someone’s death, and the priority of distributions or dividends.

Especially relevant is when your Medical Marijuana business has more than one owner, then these types of organizational documents are highly recommended.

Documentation – Be Diligent

You must take steps to record the important decisions. Do this at the time of your medical marijuana business formation as well as keep accurate paperwork during your day-to-day operations.

These steps can be as simple as setting periodic reminders to review the internal documents of your organization and run audits on how your business is running.

The operation and organization of your business is your responsibility. Nobody else is going to do this for you. But if you follow these steps and are careful in your record keeping and diligent in legal protections then this type of business will be an asset for years. It will also make your business more attractive and trustworthy to customers and investors.

Conclusion – Medical Marijuana Business Formation – Do It Right

Forming a legally defined entity is always an important first step for any business. If you are going to do it, do it right.

Revision Legal offers a complete package to help with your Medical Marijuana business formation. Contact us today with the form on this page to schedule a consultation.

Read Part 2 of 10: Smart Contracting

udrp process

The UDRP Process

The acronym UDRP is one that many website owners may have seen or heard before, but what it is, where it came from, and why we need it may be less familiar if you have never been involved in a domain dispute. But, whether you know it or not, you agreed to abide by the UDRP when you signed your domain agreement. Continue reading for a full explanation of the UDRP process.

What is UDRP?

The UDRP (Uniform Domain-Name Dispute-Resolution Policy) is a set of rules found in every Domain Name Purchase Agreement that defines how domain name disputes should be decided. The UDRP generally applies to top-level domains such as .biz, .com, .info, and .org—to name a few.

By signing the mandatory Domain Name Purchase Agreement when purchasing a domain, registrants “represent and warrant” that the registration “will not infringe upon or otherwise violate the rights of any third party,” and agree to an arbitration-like proceeding if such a claim should arise. While the UDRP is mandatory for domain holders, it is an optional procedure for mark holders.

Where did UDRP come from?

With the rise of the Internet in the early ‘90s came the use of trademarks as domain names without the owner’s consent, also known as “The Trademark Dilemma.” By 1998, the non-profit corporation ICANN (the Internet Corporation for Assigned Names and Numbers) was formed to assume responsibility for IP address space allocation, top-level domain name system management, and root server system management functions. In other words, ICANN ensures corporate trademark are not held ransom by those who register a certain domain name before the company can.

What are the UDRP elements?

The UDRP essentially protects businesses from abusive or bad faith registrations. However, like all contracts, there is more to it than that. You can read the full UDRP here, or find the essential elements, below.

To have a domain name transferred, a complainant must prove:

  • That the domain name is identical or confusingly similar to a trademark or service mark in which the complainant has rights; and
  • The respondent has no rights or legitimate interests in respect of the domain name; and
  • The domain name has been registered and is being used in bad faith by the respondent

What are the steps in the UDRP process?

Day 0: Complainant files complaint with a the NAF or WIPO, which will send send a copy to Respondent (domain holder) at the address shown on the WHOIS database.

The provider then reviews the complaint for compliance with the UDRP and provider rules. If the complaint complies, the proceeding continues; if the complaint does not comply, however, the complainant has 5 days to resolve the defects. If the complainant does not do so within 5 days, the complaint will be considered withdrawn.

Day 3: The provider sends the complaint to the registrar of the allegedly infringing domain name, along with a copy to the respondent.

Day 23: the respondent must respond specifically to the allegations in the complaint and offer any bases for the retention of the domain name within 20 calendar days of the commencement of the formal proceedings.

If the respondent does not file a response within this 20-day window, respondent will be deemed to have defaulted.

Day 28: The provider now has 5 days to appoint a panel.

Day 42: A decision will be rendered within 14 days of the panel’s appointment.

Day 45: The panel has 3 days to notify the parties of the decision.

10 business days later: Unless the adversely affected domain name holder has filed suit in a court of mutual jurisdiction by this date, the registrar will implement the decision of the panel, canceling or transferring the domain name according to the remedy sought in the complaint.

Though it is at the panel’s discretion to extend the time restrictions in exceptional circumstances, disputes are generally resolved within 60 days of filing.

If you are facing or thinking of filing a UDRP complaint, please contact Revision Legal’s Internet attorneys for a consultation by completing the form on this page.

Editors note: This article was originally published in June, 2015. It has been updated for clarity and comprehensiveness.

deceptive pricing

E-Commerce Deceptive Pricing: What All Online Sellers Need to Know

In the United States, the Federal Trade Commission (FTC) is charged with protecting consumers in the marketplace. Section 5 of the FTC Act, 15 U.S.C. § 45(a)(1) prohibits companies from utilizing “unfair or deceptive acts or practices in or affecting commerce”. This standard has been applied to protect consumers from deceptive pricing schemes. With retail purchases transitioning from brick and mortar stores to e-commerce, deceptive pricing schemes are evolving and in some ways becoming more prevalent. In addition to the FTC, many states have enacted laws meant to protect consumers from deceptive advertising and pricing tactics.

Deceptive pricing, according to the FTC, is any pricing scheme that is likely to mislead consumers and affect consumers’ behavior or decisions about the product or services offered for sale. Basically, any advertising, including pricing, must tell the truth and not mislead consumers.

Deceptive pricing has been found where companies utilize marketing schemes such as:

  • strike-through pricing
  • bait and switch
  • perpetual sales
  • price anchoring
  • “compare at” pricing.

These pricing practices may not, in and of themselves, be deceptive. However, where the pricing comparisons or fine print are deceptive in nature, the FTC may intervene.

For example, strike-through pricing is a common practice where retailers list the current price in comparison to a former price for the product. The former price appears with a line through it indicating that it is no longer valid. This is a great way to communicate discounts or sales to potential customers. However, if the stricken former price is not a valid indication of an actual former price of the product, the difference in price and consequently the “deal” is misleading.

The FTC has provided some guidance to sellers regarding deceptive advertising issues on their website here. Deceptive pricing schemes do cause actual problems for online retailers.

If companies are found to be utilizing deceptive pricing or advertising practices, the FTC will issue fines. Furthermore, many companies have faced civil litigation including class action lawsuits where damages can add up quickly.

In 2017, Canada levied a $1 Million fine against Amazon Canada for misleading pricing practices. They found that Amazon’s practice of comparing prices to higher “list prices” or suggested manufacturer prices (MSRPs) was merely a marketing gimmick that mislead consumers into thinking they are getting a great deal although the list price was not a prior actual price of the product. Canada’s Competition Bureau found Amazon culpable because they relied on their sellers to provide the list prices and never verified that those prices were ever accurate.

During the FTC’s review of Amazon’s purchase of Whole Foods in 2017, Amazon’s pricing was also investigated in the United States because of a letter filed with the FTC by Consumer Watchdog. Consumer Watchdog claimed that the reference prices posted on Amazon were higher than actual former prices of the products in the previous 90 days. Amazon denied the allegations. The FTC suspended its investigation of Amazon in 2017 but stated in a press release that, “Of course, the FTC always has the ability to investigate anti-competitive conduct”. This investigation highlights the FTC’s intent to follow up on complaints and investigate deceptive pricing in the marketplace.

The lesson here for online retailers is to make sure your marketing practices do not cross over the line to deceive consumers. Sellers should make sure that price comparisons including strike-through prices are an accurate representation of the actual deal the customers are receiving.

Today, online sellers have a lot to focus on. New competitors and pricing pressures, adhering to new privacy laws like the GDPR, and securing their customer data against hackers. Don’t make an FTC investigation into your advertised pricing an issue. If you have questions, have one of our Internet Lawyers review your pricing practices before the FTC does.

facebook and the gdpr

Facebook and the GDPR: Why Your Company Needs To Be Prepared

Data privacy is a big deal right now. Facebook is the latest company facing lawsuits and a PR nightmare related to the way they handled their customer’s data. However, Facebook is not the only company that needs to re-think its privacy related policies. The current data issues that Facebook is facing places the spotlight on an issue that has been brewing for some time.

Privacy and control over what companies do with personal information is a common concern held by people around the world, from all walks of life and all political persuasions. While there are differing views on whose responsibility it is to protect data, most agree that there should be some safety measures taken. In the US, most states have some laws related to data breach and data security but the US does not have a comprehensive federal data security law. The European Union has enacted a stringent regulation called the General Data Protection Regulation (GDPR). The GDPR goes into effect in May 2018 and places strict rules on what companies can do with the personal data of EU residents. Read here about the 5 steps your company needs to take before May.

GDPR requires companies to closely monitor and control their collection of personal data of EU residents. “Personal Data” is broadly defined and includes details such as name, date of birth, social security number, financial information, address, email addresses, IP addresses, sexual orientation, and religion. Under the GDPR, individuals have a right to opt in to having their data collected, to know what data is being collected, why it is being collected, who is receiving it, to request copies of all personal data a company has of theirs, to opt out of the data collection, and to have it deleted completely from the company’s records. In order to comply with these and other requirements, companies need to have processes and policies in place to act quickly. Non-compliance can result in massive fines of up to 20 million Euros or 4% of the company’s global turnover, whichever is higher, per breach.  These are serious consequences and US business need to be prepared. While Facebook has been highly criticized for the Cambridge Analytica data scandal, their recent changes regarding privacy have likely been in the works for some time. Like other businesses, Facebook has to be compliant with the GDPR by the May 2018 deadline.

The GDPR is an EU regulation but that doesn’t mean that US businesses don’t have anything to worry about. Even companies without a physical presence in the EU could be liable for violations of the GDPR. Like Facebook, businesses that collect personal data from any EU resident need to make sure they are compliant with the GDPR by May.  The recent PR scandal Facebook is dealing with highlights the public’s demand for transparency and providing greater control to consumers.

Facebook’s troubles and the impending strict regulations of the GDPR should be a sign for all companies to take a second look at the way they collect and utilize personal data. Just this week, Pinterest introduced a new Privacy Policy and Terms of Service in order to comply with the new European privacy laws. Other companies are following suit. For more information on how to become GDPR compliant or begin the process of creating a comprehensive data privacy policy, feel free to contact us.