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Pinning Your Company's Hopes on Pinterest

BY Scott J. Slavick
September 28, 2012

Launched in 2010 by Cold Brew Labs Inc., Pinterest is one of the fastest-growing social media websites of all time. A March 2012 Experian report estimated that Pinterest received 104 million visits, making it third only to Facebook and Twitter in popularity, while online sharing service Shareaholic reported in January 2012 that Pinterest drives more traffic to websites than Google+, LinkedIn and YouTube combined.

Pinterest is a scrapbooking site or, as the company itself proclaims, a virtual pinboard that allows users to create topical, individual bulletin boards on which they can “pin” images linked to third-party websites. Members use their boards to collect, bookmark and share information for personal projects, such as “My Kitchen Idea Book” or “Wedding Plans”; to display their own products for sale, e.g., jewelry or artwork; or to promote their company brands.

Heralded as the next big thing in social media, Pinterest presents new legal risks for companies engaged in social media marketing. By sharing images and encouraging others to re-pin them, Pinterest users may inadvertently engage in copyright or trademark infringement, violate licensing agreements, or run afoul of U.S. Federal Trade Commission (FTC) rules for commercial endorsements. Naturally, marketing departments are very interested in Pinterest'so it falls to corporate counsel to prevent Pinterest activity that poses such risks.

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