One tried and true marketing tactic - both in social and traditional media - is leveraging the power of endorsements. If others are happily using or consuming a product it must be worthwhile, right? While the law and regulatory framework regarding social media promotion is still evolving, social media endorsement is an area that has recently received additional scrutiny from government regulators.

The good news is that small and medium-sized businesses are not usually the targets of professional competitive intelligence experts. However, a business owner would be wise to protect itself from amateur intelligence gathering by its competitors. Competitive intelligence gathering begins by identifying the strategy of your own business and how your competitor's strategy will interfere. Then the intelligence gathering begins. 

It may be used against you.  For one NFL player, it cost $5 million.  

New Orleans Saints football player Jimmy Graham was recently in a contract dispute with the Saints over whether he should be designated as a "Tight End" or a "Wide Receiver."  While the distinction may seem trivial, it had huge repercussions in terms of salary. 

Twitter is using a provision of the JOBS Act that allows a company that has revenue less than $1 billion to file an IPO in without having to disclose its financials to the public.

Here's a link to what we know so far about the Twitter IPO.

Subscribe to our technology blog and we will keep you updated as this news breaks. Please contact John W. Mashni by email at jmashni@fosterswift.com or by phone at 517.371.8257 with any questions.

Source: Chart image from Yahoo! Finance

Facebook, along with Morgan Stanley, JP Morgan Chase, and Goldman Sachs, are seeking the dismissal of claims made by investors in connection to the company's IPO. The claims allege misrepresentations by Facebook and its underwriting banks that violated the Securities Act of 1933 and the Exchange Act of 1934. Essentially, the investors claim that Facebook disclosed certain information to the underwriting banks that it did not disclose to investors.

COPPA is the Children's Online Privacy Protection Act. The FTC has recently revised the rules regarding collecting personal information from children, and has set a date of July 1, 2013 as the deadline for compliance with the latest revised rule. The revision focuses on applications that collect personal information about children, such as photos, videos, and audio files containing the child's voice.

Why Facebook was under investigation?

In December 2009, privacy advocates filed a complaint with the FTC following certain changes to Facebook privacy policies.   Specifically, the FTC complaint alleged that Facebook made aspects of its users' profiles - such as name, picture, and friends list - public by default and without user consent. The FTC stated that such actions violated user expectations of privacy and threatened the "health and safety" of users by exposing "potentially sensitive affiliations" such as political views and sexual orientation.

The FTC complaint also alleged other situations where Facebook "made promises that it did not keep," such as promising that it would not share information with advertisers or retain data that it promised users was deleted.

Veoh Networks - a video hosting website - sought protection under the Digital Millennium Copyright Act's safe harbor provision against a user's infringement claims.  The user claimed Veoh (1) knew of and failed to remove infringing videos uploaded by other users; (2) had the ability to control infringing activity on its system; and (3) that its infringer policy was inadequate.