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This last month we seemed to have
faced a rush of similar questions about copyright and shareholder
issues. Hopefully these two questions and answers will
provide useful pointers on commonly faced issues.
Q. I am getting a website
developer to make a site for my business so that we can start
selling on-line. I've sent them various photos from other
sites which will be useful. A friend told me I had
to be careful of copyright issues--what are they (and what
about my site: will it be protected)?
A. For once "A. Friend" is right! You
need to be wary of:
- breaching copyright of the photographers who took the
photos you've taken from the Web
- breaching the copyright (or maybe the viewing terms)
of the sites you've taken them from
- making sure that copyright in the site you get developed
is transferred to you from the developer (for a creator
of such a thing automatically owns the copyright in it--copyright
is the right to stop something being copied etc).
But hopefully your contract with the developer will set all
this out. You do have a web development agreement, don't you?
It is an essential in our view. This is a big purchase for
your business.
Your site will be protected by copyright. People may not lawfully
copy it's wording, it's photos, logos and its general look
e,g, colours, layout. There is more in this Copyright
article on our website.
Please bear in mind this is a very general comment, copyright
is a complex and very detailed subject. Do take advice if unsure.
Q. I am a shareholder in a small manufacturing business. There’s
myself and another Directory / Shareholder and we want to formalise an agreement
between us. Is a 50:50 shareholding the best way to
proceed?
A. Almost always not. Indeed it can cause many problems. You
can quickly get into deadlock on important issues about which you'll disagree.
I know, you've been friends since school, she's a great girl, you
never argue. Trust me, you will when running a company where your livelihoods
are at stake especially when times are hard as they doubtless will be.
A properly drawn shareholders agreement can foresee
and prevent such issues by setting out things which have to
be agreed and by what method. It should probably also provide
for mediation in the event of a dispute. I emphasised the words "properly
drawn" as many that we see are adequate and appear not
to have been drawn up by people who have real experience of
the issues that may arise. The danger is that you might think
you're covered if you've got an agreement, but is it any good?
The article
on shareholder agreements on our website highlights
some of the things you should look out for. |
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