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Here’s Why Every Content Creator Needs Legal Protection
Opinions expressed by Entrepreneur contributors are their own.
In 2005, when I started my online business and published my first blog post, legal protection was the last thing on my mind. I believed it was only necessary for established businesses.
Now, with years of experience as an online entrepreneur and a law degree under my belt, I realize how misguided that thinking was.
Whether you’re just getting started as a content creator or an established online business, believing you’re “too small” for legal protection is a dangerous misconception. Let’s take a look at why size doesn’t matter when it comes to legal risks in content creation.
Related: 3 Areas of Law Every Entrepreneur Should Know
1. The dangerous mindset of “I’m too small to matter”
When you’re just starting out, legal considerations often take a backseat to content creation and audience building. However, the internet and the law don’t discriminate based on the size of your platform.
Consider this scenario: You’re a lifestyle vlogger with 500 subscribers. You use a popular song in your latest video, assuming it’s harmless given your small audience. Suddenly, you receive a cease and desist letter for copyright infringement. Your channel’s size doesn’t shield you from legal consequences.
The “I’m too small” mindset can leave you vulnerable to various legal risks, regardless of your audience size.
2. Size doesn’t matter, but impact does
In content creation, your potential impact outweighs your audience size when it comes to legal exposure. Here are two examples:
- A fitness influencer with 5,000 Instagram followers shares a “miracle” weight loss tip that causes harm to a follower. Despite the relatively small following, the influencer could be held liable for the damages.
- A podcaster talking about a famous celebrity makes negative statements that are untruthful. Even with a limited audience, this could result in a lawsuit for defamation.
These scenarios illustrate that the size of your platform doesn’t determine your legal risk. Your content’s potential impact does.
Related: Don’t “Shake Off” These 5 Business, Brand and Legal Lessons From Taylor Swift
3. Three key areas every creator should address immediately
To protect your content and your business, focus on these three critical areas:
1. Intellectual property protection
Safeguarding your brand and respecting others’ IP rights is crucial. This includes your brand name, logo and original content. Equally important is ensuring you’re not infringing on others’ rights, such as using copyrighted content without permission.
Action step: Conduct a trademark search for your brand name and consider registering it if it’s available or discontinue using it if it belongs to someone else.
2. Terms of service and privacy policies
These documents are essential, even for small creators. They set expectations for your audience and protect you legally. For instance, a clear privacy policy is crucial if you collect any user data, even just email addresses for a mailing list.
Action step: Draft basic terms of service and a privacy policy, or consult a legal professional to create these documents.
3. Set up a business entity
Establishing a proper business structure, like an LLC, can provide personal asset protection. This separation between personal and business assets can be crucial in the event of legal issues.
Action step: Research the benefits of forming an LLC or other business entity for your content creation activities.
4. The cost-benefit analysis: prevention vs. reaction
Investing in legal protection early may seem costly, but it’s often far less expensive than dealing with legal issues reactively. For example, the cost of trademark registration is minimal compared to potential damages for trademark infringement.
Consider this: A business colleague of mine recently spent several thousand dollars to settle a copyright infringement claim. Had they simply been aware of copyright law and spent a small amount to license the image, they could have avoided the issue at a fraction of the cost.
Related: So Somebody Stole Your Content. Now What?
5. Starting small: three steps for immediate protection
Even with limited resources, you can take steps to protect your content business:
- Educate yourself on basic copyright laws relevant to the type of content you create and use.
- Use proper attribution and obtain necessary permissions for any third-party content you use.
- Implement basic legal documents on your website or channel, such as a simple terms of use and privacy policy.
Legal protection isn’t just for big creators — it’s a fundamental aspect of running a content-based business, regardless of size. By addressing these key areas early, you’re not only protecting your current work but also laying a solid foundation for future growth.
A sound legal strategy is about recognizing potential risks and taking proactive steps to protect your creative endeavors. Don’t wait until you face a legal challenge to start thinking about these issues.
Your content, your brand and your peace of mind deserve protection from day one.
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Best US Cities to Start a Business, Entrepreneurship: Report
What city is best for starting your business? While several factors should play into a decision, a new report from fintech company SumUp has identified the top 10 for entrepreneurship based on tax data, the number of millionaires in the city, and even Google searches.
New York topped the list because of the opportunities it offers across industries, from tech to fashion, and its 4% sales tax, which was the lowest of the group. New Yorkers also frequently Google “how to get rich” and “how to make it in business,” the study found. The city also offers access to over 30 WeWork coworking locations, the most of all the cities in the report, which theoretically could help startup employees collaborate.
Related: Worried About AI Stealing Your Job? A New Report Calls These 10 Careers ‘AI-Proof’
Chicago came in at No. 2, with SumUp researchers highlighting its 120,500 millionaires and high interest in entrepreneurship through tracked Google searches. They also found that Chicago stood out for finance startups.
Rounding out the top three was Miami, “where the weather is warm and taxes are low,” according to the study. Travel, tourism, and commerce startups thrive in this city, which has 0% personal income and capital gains tax.
Related: These Are the Top 15 Jobs With the Highest Entry-Level Pay
Here’s a complete list of the top ten cities for entrepreneurship, according to the report.
1. New York
Number of millionaires: 349,500
Personal income tax – highest income: 10.90%
Sales tax: 4.00%
2. Chicago
Number of millionaires: 120,500
Personal income tax – highest income: 4.95%
Sales tax: 6.25%
3. Miami
Number of millionaires: 35,300
Personal income tax – highest income: 0.00%
Sales tax: 6.00%
4. Los Angeles
Number of millionaires: 212,100
Personal income tax – highest income: 13.30%
Sales tax: 9.50%
5. Dallas
Number of millionaires: 68,600
Personal income tax – highest income: 0.00%
Sales tax: 6.25%
6. Austin
Number of millionaires: 32,700
Personal income tax – highest income: 0.00%
Sales tax: 6.25%
7. Houston
Number of millionaires: 90,900
Personal income tax – highest income: 0.00%
Sales tax: 6.25%
8. Seattle
Number of millionaires: 54,200
Personal income tax – highest income: 0.00%
Sales tax: 6.50%
9. Washington
Number of millionaires: 28,300
Personal income tax – highest income: 10.75%
Sales tax: 6.00%
10. Boston
Number of millionaires: 42,900
Personal income tax – highest income: 9.00%
Sales tax: 6.25%
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What Is Founder Mode and Why Is It Better Than Manager Mode?
Paul Graham, the founder of famed startup accelerator Y Combinator, coined a new term this week that has taken over social media: founder mode.
In an article released on September 1 and publicized on X over Labor Day weekend, Graham separates “founder mode” from the traditional “manager mode” route by noting key differences in management styles and organizational structure. Graham’s X post has over 21 million views at press time.
Related: How to Start a Multi-Million Dollar Company, According to an IBM Engineer Turned Founder
Founder mode means that the CEO interacts with employees across the organization, not just their direct reports. The startup, even as it grows into a large company, is less hierarchical; the CEO could do “skip-level” meetings with employees, for example. Graham gave the real-world example of Steve Jobs running an annual retreat for who he thought were the 100 most important people at Apple — regardless of where they were on the corporate ladder.
Manager mode, meanwhile, is less hands-on and involves more delegation to other people. Founders can grow companies and run them effectively without switching to manager mode, Graham stated.
“Hire good people and give them room to do their jobs,” Graham wrote. “Sounds great when it’s described that way, doesn’t it? Except in practice, judging from the report of founder after founder, what this often turns out to mean is: hire professional fakers and let them drive the company into the ground.”
Related: How to Start Your Dream Business This Weekend, According to a Tech CEO Worth $36 Million
Graham gave the example of Airbnb CEO Brian Chesky, who tried to follow conventional “manager mode” wisdom to hire good people and let them do their jobs.
“The results were disastrous,” Graham wrote.
Chesky had to pivot to a different “founder mode” style of management and explained in an interview last year that founders have multiple advantages over managers: They have owned every part of the process of building a company, from start to finish; They have built the company up, so they can rebuild it; and they have permission to rebrand the company or make major changes.
This is it: @bchesky on founder mode.
Three reasons why founders differ from managers:
1. Being the biological parent
2. Full permission to make change
3. Knowing how to rebuild the company pic.twitter.com/VhuQ70B8FK— Yana Welinder (@yanatweets) September 2, 2024
In the past few days since Graham released his essay, the social media world has begun exploring what it means in humorous and insightful ways. One post drew a comparison between micromanaging and founder mode.
founder mode pic.twitter.com/LWOlaFq4UJ
— ST (@seyitaylor) September 2, 2024
Other posts from women founders addressed the question: Can women be in founder mode too?
Chesky wrote on X earlier this week that women founders had been reaching out to him since Graham released the essay about how they can’t run their companies in founder mode the same way men can.
“This needs to change,” he wrote.
Remember when the female founders did founder mode and all got cancelled for it?
— Sara Mauskopf (@sm) September 3, 2024
It happened to me first — headlines portraying me as a “toxic leader” when I had to make the same, often unpopular, decisions that my male peers did without critique.
For them, it’s called Founder Mode, and it’s celebrated (a proper noun! With its own merch! And trademarks… https://t.co/rF0IM1huy3
— Sophia Amoruso 3.0 (@sophiaamoruso) September 5, 2024
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