Social Media Accounts
Who Owns Your Company’s Social Media Accounts? Some business assets are easy to spot: a company car or fax machine, for example. Others are intangible, like a bank account or line of credit.
And then there is one item that is just emerging as a recognized business asset: social media accounts. Yes, a business can “own” its social media presence.
Online accounts for Facebook, Twitter, LinkedIn, and so on are valuable resources and, increasingly, businesses are struggling with determining to whom this property belongs.
What’s the Big Deal?
There is two-fold value associated with these social media accounts.
First, an account page contains user-generated content that has been created specifically to promote that business’s goods or services. It has been developed, at the very least, as a means to increase awareness about a business. Some social media pages serve as a way to respond to customer complaints, release announcements, or advertise special promotions.
Second, the account has followers, friends, or connections that are unique to it as a business. The accounts that are linked to a business represent real past, present, or future customers and clients.
PhoneDog v. Kravitz
In 2012, a case emerged that put the ownership issue in the spotlight: PhoneDog v. Kravitz. Defendant Kravitz was an employee of PhoneDog. He was provided with a “company” Twitter handle, @PhoneDog_Noah. One of his job responsibilities was to promote his employer’s services and share company information through the account.
Over 17,000 people followed @PhoneDog_Noah.
Kravitz later decided to leave PhoneDog and the company requested the return of the Twitter account. Kravitz refused and instead changed the Twitter handle to @noahkravitz, thus retaining the company’s 17,000 followers.
The company then sued Kravitz, based on several theories of liability including: misappropriation of trade secrets, conversion, and intentional interference with prospective economic advantage.
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And then there is one item that is just emerging as a recognized business asset: social media accounts. Yes, a business can “own” its social media presence.
Online accounts for Facebook, Twitter, LinkedIn, and so on are valuable resources and, increasingly, businesses are struggling with determining to whom this property belongs.
What’s the Big Deal?
There is two-fold value associated with these social media accounts.
First, an account page contains user-generated content that has been created specifically to promote that business’s goods or services. It has been developed, at the very least, as a means to increase awareness about a business. Some social media pages serve as a way to respond to customer complaints, release announcements, or advertise special promotions.
Second, the account has followers, friends, or connections that are unique to it as a business. The accounts that are linked to a business represent real past, present, or future customers and clients.
PhoneDog v. Kravitz
In 2012, a case emerged that put the ownership issue in the spotlight: PhoneDog v. Kravitz. Defendant Kravitz was an employee of PhoneDog. He was provided with a “company” Twitter handle, @PhoneDog_Noah. One of his job responsibilities was to promote his employer’s services and share company information through the account.
Over 17,000 people followed @PhoneDog_Noah.
Kravitz later decided to leave PhoneDog and the company requested the return of the Twitter account. Kravitz refused and instead changed the Twitter handle to @noahkravitz, thus retaining the company’s 17,000 followers.
The company then sued Kravitz, based on several theories of liability including: misappropriation of trade secrets, conversion, and intentional interference with prospective economic advantage.
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