User Generated Content (ucg) Presents Big Advertising Oppoutunity For Small Online Businesses
- Date: 2008-07-14 - Word Count: 443
Share This!
User generated content (UGC) is a rapidly growing phenomenon on the Internet. Popular social networking sites that rely on UGC for content include YouTube, MySpace, Facebook, Friendster, just to name a few. Generally, UGC refers to various kinds of media content produced by regular, every-day people (as distinguished from traditional media producers).
But UGC is not just for social networking sites anymore. It's now moved into online advertising, but there's a catch -- claims for false advertising.
In a recent case, Subway sued its competitor, Quiznos, claiming false advertising. This case may offer some valuable insight into pitfalls to avoid.
UGC Offers Business Opportunity For Small Online Businesses
One way for small online businesses to create inexpensive advertising is to let your customers do it for you -- through UGC.
Quiznos is one of several companies that have extended UGC to advertising; however, a recent suit by competitor Subway reveals pitfalls involving false advertising claims. Doctor's Associates, Inc. v. QIP Holders, LLC, 2007 WL 1186026 (D. Conn. April 19, 2007).
Subway v. Quiznos
As part of a nationwide call for user-generated ads, Quiznos posted 3 user-generated examples of ads that compared its prime rib cheese-steak sandwich to Subway's competing sandwich. Subway complained that the ads contained false and misleading statements and sued Quiznos for false advertising under the federal Lanham Act.
Quiznos filed a Motion to Dismiss the false advertising claim based on 47 U.S.C. Sec. 230 ("Section 230") which immunizes internet service providers and website operators, from being liable for what their users post. The U.S. District Court in Connecticut ruled that Section 230 was not appropriate for a Motion to Dismiss, but that Quiznos could still raise it later as an affirmative defense.
While the highly technical distinction made by the Court is of little interest to Internet marketers, the important question is whether Quiznos will actually succeed with a Section 230 defense later. The Court pointed out in a footnote in the ruling that Subway would be authorized to learn through Discovery the extent to which Quiznos was involved in the user's videos. It would appear that Section 230 would shield Quiznos from liability even if Quiznos provided some technical input for the videos, but probably not if Quiznos went beyond technical input to participation in the statements at issue.
An additional issue regarding the applicability of Section 230 to this case is whether Subway's claim is an "intellectual property" claim. Section 230 expressly provides that it is not available as a defense to an "intellectual property" claim.
Conclusion
We won't know whether Section 230 will be a defense to liability for Quiznos until the case is fully adjudicated. This future ruling promises to be of significant interest to Internet marketers, particularly small businesses.
But UGC is not just for social networking sites anymore. It's now moved into online advertising, but there's a catch -- claims for false advertising.
In a recent case, Subway sued its competitor, Quiznos, claiming false advertising. This case may offer some valuable insight into pitfalls to avoid.
UGC Offers Business Opportunity For Small Online Businesses
One way for small online businesses to create inexpensive advertising is to let your customers do it for you -- through UGC.
Quiznos is one of several companies that have extended UGC to advertising; however, a recent suit by competitor Subway reveals pitfalls involving false advertising claims. Doctor's Associates, Inc. v. QIP Holders, LLC, 2007 WL 1186026 (D. Conn. April 19, 2007).
Subway v. Quiznos
As part of a nationwide call for user-generated ads, Quiznos posted 3 user-generated examples of ads that compared its prime rib cheese-steak sandwich to Subway's competing sandwich. Subway complained that the ads contained false and misleading statements and sued Quiznos for false advertising under the federal Lanham Act.
Quiznos filed a Motion to Dismiss the false advertising claim based on 47 U.S.C. Sec. 230 ("Section 230") which immunizes internet service providers and website operators, from being liable for what their users post. The U.S. District Court in Connecticut ruled that Section 230 was not appropriate for a Motion to Dismiss, but that Quiznos could still raise it later as an affirmative defense.
While the highly technical distinction made by the Court is of little interest to Internet marketers, the important question is whether Quiznos will actually succeed with a Section 230 defense later. The Court pointed out in a footnote in the ruling that Subway would be authorized to learn through Discovery the extent to which Quiznos was involved in the user's videos. It would appear that Section 230 would shield Quiznos from liability even if Quiznos provided some technical input for the videos, but probably not if Quiznos went beyond technical input to participation in the statements at issue.
An additional issue regarding the applicability of Section 230 to this case is whether Subway's claim is an "intellectual property" claim. Section 230 expressly provides that it is not available as a defense to an "intellectual property" claim.
Conclusion
We won't know whether Section 230 will be a defense to liability for Quiznos until the case is fully adjudicated. This future ruling promises to be of significant interest to Internet marketers, particularly small businesses.
Related Tags: legal contracts, contract forms, chip cooper, online contract drafting service, sample contract agreements, contract drafting software, privacy policy generator, sample privacy policy, privacy policy form, legal forms software, examples privacy policy, saas co
Chip Cooper is a leading intellectual property, software, and Internet attorney who advises software and ecommerce businesses nationwide. Chip's 25+ years of experience include 20 years as Adjunct Professor of Computer Law at Wake Forest University School of Law. Visit Chip's www.digicontracts.com site and download his FREE newsletter, Website Law Alert, and also learn about his "Do-It-Myself" and "Do-It-For-Me" service options. Your Article Search Directory : Find in Articles
Recent articles in this category:
- Marketing And Customer Relationship Management
Send your notice of rent in time, for free. His Craigslist ad rental unit will be available on the s - Google Fundamentals - Simple Ideas You Need To Know
Google has made easy the lives of many of us by making it possible to search on the internet. But, t - Rss Feed Marketing Strategy
There never seems to be an end to new marketing buzz words on the internet. You most likely have hea - Common Mistakes You Should Avoid While Twitter Marketing
A Twitter marketer makes his first mistake by bragging about his products and services. But let's fa - A Tactical Approach To Social Network Marketing
For many social network marketing involves joining any of the available online communities, making c - How To Turn Your Website Visitors Into Customers
Some websites only get a dose of the cost from the money they spent on building up the website. Visi - Content Rich Marketing Strategies For Attorneys
More then just a smartly designed website is essential in today's competitive online market. To succ - Should You Include Video Seo In Your Seo Techniques?
Orange County SEO experts always look forward to include newer SEO techniques in their process. This - Internet Network Marketing - Don't Give Up, You May Be Just 3 Feet From Gold!
One of the most common causes of failure in Network Marketing business is people quitting when they - As Recession Persists Small Businesses Record Success Making Money Online
As the third quarter of the year comes to an end by September, statistics from the 'New York Stock E
Most viewed articles in this category:
- Affiliate Marketing: Feel The Fear And Do It Anyway
It sounds funny to be talking about fear and affiliate marketing in the same sentence. You normall - John Reese Review: What makes Traffic Secrets, Auction Secrets, and the Reese Report a Success
John Reese is one of the most experienced people working on the net today, and has been getting atte - Internet Marketing - Selling To Tony
As usual, I was scanning a forum the other day, and the inevitable question arose: What is the best - MySpace Marketing: How To Distinguish Yourself From The Crowd
When I checked my MySpace Inbox yesterday, one of my "friends" had sent me a message asking "What do - How To Avoid Internet Marketing Misery
Every day you can read stories about people who have made a fortune online. Being an Internet entrep - All About Affiliate Marketing
Affiliate Marketing is a broad topic that primarily deals with you (the affiliate) selling - Make Money with Niche Health Content
The health industry is much bigger than the internet marketing industry. Billions are spent each an - Why Make Money Online
There are so many opportunities on how to make money online. You can start your own business, sell p - Establishing Your Identity on the Internet
If your business plan involves establishing a personal identity on the Internet, this requires some - Internet Marketing Consultants And How They Help You Market Your Business Online
An Internet marketing firm can offer the push that any business web site needs to be recognized by t