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Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
contacts, social networks

Companies:
linkedin



Do You Own Your Social Networking Friends? Or Does Your Employer?

from the do-you-own-your-rolodex? dept

In the sales world, you're often judged on the size and quality of your "rolodex" of contacts. No one expects a salesperson jumping from one job to another to somehow "forget" everyone they know -- or to cough up their entire list of contacts to the previous company. Yet that seems to be what happened in the UK. Slashdot points us to the news of a court ruling where a guy was forced to give up his LinkedIn contact list to his former employer after he left the company to start his own business. In this case, the original company had actively encouraged its employees to make use of LinkedIn, even though it was under the individual's control, rather than the employer's.

Expect to see plenty more lawsuits like this going forward. For many users of social networks from LinkedIn to MySpace to Facebook, the connections you make blur the lines between professional and personal -- and the questions of who actually "owns" those contacts will become a legal issue that the courts will decide over and over again. Of course, the truth is that this is a silly debate. No one "owns" a contact in the first place. If the company has a rule requiring employees to hand over contacts to the company, then it should employ a CRM system which the company controls. Otherwise, reaching into a personal social networking account seems to go beyond what's reasonable.

10 Comments | Leave a Comment..

 
Scams

Scams

by Mike Masnick


Filed Under:
419, advance fee, nigeria, scams, social networks

Companies:
linkedin



Nigerian 419 Advance Fee Scammers Move To... LinkedIn?

from the suckers,-suckers-everywhere dept

It still seems difficult to believe that anyone falls for those "Nigerian" advance fee 419 scams, but time and time again we read about smart people who should know better who fall for them. And reports come in about just how much money these scams make. And, the really amazing thing, is that many of the victims are so convinced by the scam that even after it's all revealed, and they've lost all their money, they still believe the scammer's story. However, times are getting harder to convince people about these scams over unsolicited email, so apparently they're starting to move onto social networks, including business social networks like LinkedIn. Perhaps I just use LinkedIn in a very different manner than most people, but I find it hard to believe that if some random unknown person suddenly "connected" to you on LinkedIn and offered you a cut of a multi-million dollar stash, you wouldn't be suspicious.

22 Comments | Leave a Comment..

 
Rumors, Conspiracies, etc.

Rumors, Conspiracies, etc.

by Mike Masnick


Filed Under:
buyout, hype, rumors

Companies:
facebook, linkedin, news corp., skype, youtube



Is LinkedIn The Latest To Play The Skype-Hype Valuation Bubble Game?

from the anyone-taking-bets-on-the-final-amount? dept

Over the past few years, we've noticed a pretty consistent pattern among startups trying to create huge valuations for themselves in a short period of time. While other companies have done it in the past, the latest cycle really kicked off with Skype confusing people into thinking it was worth billions. Despite having relatively low revenues, there suddenly leaked rumors that Skype was for sale. Skype denied it, and then had one of its investors say the company was worth well over a billion. Then the feeding frenzy began, until eBay came out the winner -- a move it later regretted. Facebook was the next to follow the Skype Hype Strategy, but may have been a bit too early to the game. It took an extra year, but the company may have outdone Skype in its $15 billion valuation (though, unlike Skype, Facebook hasn't turned that into real cash yet). In between, YouTube used a nearly identical strategy to pump up its valuation.

Here's what you do: get a little buzz. Leak a report to the press about a buyout offer. Deny the reports of the buyout offer and then have either an exec or an investor make an offhanded remark about how the company is actually worth billions, allow the feeding frenzy to begin and eventually pick an exit opportunity. It also doesn't hurt to have some sort of PayPal connection (which both Facebook and YouTube had). The latest to test out this strategy may be LinkedIn, which also has the PayPal connection. Last week the rumor broke that News Corp was trying to buy LinkedIn. The company's CEO quickly denied the report and said that the company would need to sell for "a lot more" than a billion dollars. Now, the latest reports are that News Corp isn't buying LinkedIn, but just like those other stories, the stage has now been set. Suddenly others may start thinking that perhaps LinkedIn is a good buy for over a billion dollars, and the feeding frenzy begins again. Anyone want to take guesses on the next startup to play this game?

8 Comments | Leave a Comment..

 
Overhype

Overhype

by Mike Masnick


Filed Under:
organized crime, security, social networks

Companies:
facebook, linkedin, messagelabs, myspace



What Else Can We Blame On Facebook? How About Helping The Mob?

from the any-other-conspiracy-theories dept

Constantine von Hoffman has been doing a nice job tracking both how security firms are blaming Facebook (or any other popular social network) for just about anything, but also how the press keeps falling for it. His latest find is to trash an Australian news organization for writing up a whole article on how Facebook, Linkedin and MySpace are popular feeding grounds for organized criminals without bothering to talk to a single other source than a security firm who has a vested interest in generating headlines and making people worried about security. As Constantine notes, he has no reason to doubt that the claim true, but it seems like the press should at least look for a second, less biased, source for confirmation.

17 Comments | Leave a Comment..

 
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