Technology entrepreneurs are always thinking outside of the box. They see opportunities where others see problems, and they have the drive and determination to make their visions a reality. However, technology entrepreneurship is not without its challenges.
There are several rules and regulations all technology entrepreneurs need to be aware of, and if you don’t abide by them, you could find yourself in legal trouble. In this blog post, we will discuss some of the most important rules and regulations technology entrepreneurs like you need to know in order to achieve responsible and sustainable growth.
Privacy Laws
Technology entrepreneurs need to understand privacy laws, especially if they are collecting personal data from users. Personal data is any information that can be used to identify an individual, and if your business is collecting this data, you must do so in a legal and transparent way. There are strict penalties for violating privacy laws, so it’s important to understand the rules before you collect any data.
Privacy laws protect the personal information of individuals from being mishandled or misused by:
- Restricting the types of personal data businesses can collect
- Limiting the ways businesses collect, store and share personal data
- Establishing rules on how businesses can communicate with customers
There are a few different ways to collect data from users, and each one has its own set of rules. For example, if you are using cookies to track user behavior, you need to make sure that you disclose this to users in a clear and concise way. You also need to get user consent before you start collecting data.
If you are collecting data through forms, you need to include a privacy policy that explains how the data will be used and what rights the user has. Similar to cookies, you also need to get user consent before you collect any data through forms.
Make Sure You’re PCI-DSS Compliant if you Accept Credit Card Payments
If your technology business accepts credit cards, you need to make sure that you are PCI-DSS compliant. PCI-DSS is a set of security standards that businesses must follow in order to accept credit cards. These standards are designed to protect businesses and consumers from fraud and data breaches.
Essential Privacy Laws Every Entrepreneur Should Know
Check out these resources to learn more about additional privacy laws every technology entrepreneur should know about:
- The General Data Protection Regulation (GDPR, the European Union’s data protection law)
- Children’s Online Privacy Protection Act
- Health Insurance Portability and Accountability Act
- California Online Privacy Protection Act
- California Consumer Privacy Act
Advertising Laws
Technology entrepreneurs also need to be aware of advertising laws, especially if you’re planning on running any type of advertising campaign.
The CAN-SPAM Act contains a number of requirements businesses must follow in order to send commercial email messages, impacting virtually all tech-focused businesses and startups. Some of the CAN-SPAM Act’s requirements include:
- Disclosing that the message is an advertisement or solicitation
- Including the sender’s physical address
- Including a clear and concise way to opt out of receiving future messages
- Not using false or misleading header information
- Not using deceptive subject lines
- Not including sexually explicit content in the message
Customer Testimonials and Endorsements
Do you plan on using customer testimonials and endorsements in your next campaign? The FTC has a number of requirements businesses must follow in order to use customer testimonials and endorsements in their advertising, including:
- Disclosing any material connection between the endorser and the business
- Making sure that the endorsement is not misleading
- Making sure that the endorsement is based on the endorser’s honest opinion
Intellectual Property Laws
Intellectual property laws protect businesses and individuals from having their ideas and creations stolen. There are a few different types of intellectual property, including patents, copyrights and trademarks.
Patent law protects inventions from being copied or used without the permission of the inventor. If you have an invention that you want to protect, you need to file a patent application with the US Patent and Trademark Office.
Copyright law protects creative works from being copied or used without the permission of the copyright holder. If you have a creative work that you want to protect, you need to register it with the US Copyright Office.
Trademark law protects business names and logos from being used by other businesses. If you have a business name or logo that you want to protect, you need to register it with the US Patent and Trademark Office.
By understanding these laws and taking these steps, you can avoid costly lawsuits and protect your brand and business name from being used by others without your permission.
Insight: Hiring a contractor to develop technology for your business does not mean that your company automatically owns that technology once it’s finished. Your contract must explicitly state that your business will own all the rights to the technology the contractor develops.
We Help Technology Entrepreneurs Navigate the Law While Supporting Their Growth
Laws pertaining to technology businesses are changing as quickly as technology itself. We specialize in supporting technology and software businesses of all sizes, so we understand the challenges — and opportunities — you’re facing.
If you have any business or legal-related questions, or if you’re seeking a team that can help you grow your business, please contact us. We’re here to help!
*This blog post is for informational purposes only and does not constitute legal advice. Please consult with an attorney to ensure that you are compliant with all applicable laws.
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