This story out of Texas is an excellent reminder to not step on other party’s intellectual property toes!
The Incident: Crypto-Investment Firm’s Website Features Image of SCOTUS Justice
A Texas cryptocurrency investment firm locked horns with state authorities. The proverbial “powers that be” objected to the company’s use of a website graphic featuring U.S. Supreme Court Justice Ruth Bader Ginsburg. According to reports, officials found the picture particularly problematic because it sat above a caption that read “Code Of Ethics Association.”
Ultimately, regulators felt the image violated truth-in-advertising rules. Joe Rotunda, the Texas State Securities Board’s director of enforcement, admonished, “Ruth Bader Ginsburg is not selling bitcoins.” In its warning, the agency further accused the company of creating “deceptive and misleading” promotional materials, which amounted to “fraud” and “marketing unregistered securities in the state.”
Image Use: What Pictures Can I Use On My Website?
So, what, exactly are the rules for using images on websites?
- Image search is not a personal photo gallery. Always secure permission to use graphics (writing, art, etc.) found online.
- It’s fine to use images from “royalty free” photo sites like Pixabay. Be aware, though, that even on royalty-free platforms, contributors may set permissions for graphics or images. Always check!
- It’s also perfectly fine to use pictures purchased from stock photo websites, like Shutterstock and 123RF.com. But again, pay attention to restrictions.
Another Online Intellectual Property Note: Businesses Are Responsible For Affiliates, Marketers, and Designers
There’s a detail about this case that we wanted to highlight: According to reports, the website’s administrator appears to be in Panama.
Now, it’s perfectly fine to use a designer or developer in another country. But, could the admin’s location affect a case like the one above? Could a U.S.-based business not know that its Panamanian web admin used the picture? And if not, is that a sufficient excuse to dodge online marketing and advertising rules?
In a word: No. Over the years, the Federal Trade Commission has made it crystal clear that brands and businesses are responsible for any promotional actions, executed on their behalf, by designers, developers, affiliates, marketers, and even social media influencers. Here are the three main rules to remember.
- If you compensate people to promote products online, and they fail to label those promotional posts with disclosure hashtags, the FTC will hold you responsible.
- Ignorance isn’t an excuse! If you hire a website designer and developer in another country, and they don’t heed stateside intellectual property laws, the FTC will hold you responsible.
- If affiliates create fake news sites to promote your brand, and nothing in your agreement expressly forbids such behavior, the FTC will hold you responsible.
Connect With An Online Intellectual Property Lawyer
Do you need help with an online intellectual property matter, like copyrighting or trademarking? Or perhaps you’ve found yourself at the center of an intellectual property conflict and need a lawyer to fight on your behalf? Either way, we’re ready to dive in and get the job done.
Let’s chat about how we can help you. The consultation is on us.
Get Help With An Online Intellectual Property Matter ❯
