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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 artist/entertainment company, 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.
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 Pharmaceuticals, 652 B.R. 392 (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 (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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Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.