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Determining Ownership Rights of Social Media Accounts
Social media accounts are important commercial assets because they reach a loyal consumer base committed to the brand, frequently with low, if any, associated marketing cost. The ownership of these accounts has become fodder for litigation when business relationships break down. Whether in the context of employer/employee, franchisor/franchisee or influencer/brand relationships, who owns and controls the social media accounts and associated goodwill sometimes comes into dispute.
This article provides guidance on the standards courts apply in determining ownership rights over social media accounts, as well as best practices to head off such disputes before they occur.
Ownership of Social Media Accounts Is a Matter of State Law
It is helpful at the outset to understand what is at issue in disputes over ownership of social media accounts. When courts adjudicate ownership of social media accounts, they are generally referring to a user's right "to access and use a social media account." In re Vital Pharm., 652 B.R. 392, 396 (Bankr. S.D. Fla. 2023). This may be a distinct analysis from rights in the content posted on the account. See, JLM Couture v. Gutman, 91 F.4th 91, 103 (2d Cir. 2024) ("[T]he fact that Gutman transferred some or all of her rights in particular content posted on the Disputed Accounts does not by itself support an inference that she transferred ownership of the Disputed Accounts themselves.").
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Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
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Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?