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Drafting
Considerations
Guide covering crucial aspects
to be considered while drafting
Website Terms & Conditions
Website
Terms
Contents
2 Title of the book
3
4
7
8
9
| Introduction
| Limitation of Liability
| IP Ownership & Third-Party Content
| Privacy Policy
| Checklist: Do’s and Don’ts
Introduction
A
3 Website Terms – Drafting Considerations
s businesses and marketplaces
transition towards new age
mediums such as web and
mobile, complexities surrounding
them also continue to grow.
Appropriate terms and conditions
along with privacy policies are
critical to every website and
mobile application.
Important considerations while
drafting terms and conditions for
websites and mobile applications
are discussed herein.
www.techlaw.attorney
info@techcorplegal.com
Limitation of Liability
While drafting terms and conditions for websites and
mobile applications, limiting the liability is extremely
crucial as no business intends to be held responsible
for misleading the consumers.
Accordingly, by having appropriate liability clauses,
businesses can limit the liability of the business, its
directors, officers and employees.
One way to limit the liability of a business is by
explicitly stating in website terms and conditions that
information published on the website, while assumed
to be accurate, may in fact be incorrect, out of date,
or inaccurate to some extent. This is due to the
probable reason that any changes in business may
not be implemented on the website in real time.
Therefore, it is advisable to mention in website
terms and conditions that the information is
provided ‘in good faith’ on an ‘as is’ basis,
which implies that the information should only
be taken at face value and not be relied on to
any extent beyond which the law requires.
4 Website Terms – Drafting Considerations
www.techlaw.attorney
info@techcorplegal.com
5
Another important way to limit the liability of
business is to explicitly acknowledge the relevant
provisions of applicable laws and agree to applicable
rights and remedies available to the consumers of your
business.
If website is offering products and/or services,
such rights should be clearly stated in accordance with
laws of appropriate jurisdictions. Specifically, in case of
online marketplace business offering products or
services through third party vendors, it should be clearly
stated as to who is providing such products or services,
so that appropriate consumer rights and remedies can
be accordingly decided.
However, certain information,
such as, for example, but not
limited to, contact details, is
required to be accurate by
law across multiple
jurisdictions.
In addition, website terms and
conditions should be drafted
to exclude the company, its
directors, officers and
employees of any liability for
any representations or
possible warranties.
Website Terms – Drafting Considerations
www.techlaw.attorney
info@techcorplegal.com
6
Furthermore, with a view to secure business’s
interest and appropriately acknowledging
consumer’s rights and remedies, balanced
website terms and conditions shall be drafted
to clearly state all the inclusions to limit the
applicability of any implied conditions or
warranties, to the extent as permitted by the law.
There can be numerous cases where such
exclusions can be applied, such as, for example,
but not limited to, disclaiming any implied or
express guarantees, warranties,
representations or conditions of any kind,
which are beyond the scope of transactions
between the business and the consumers,
error free accessibility and use of the website,
and the like.
Liability of business
can further be limited
by drafting website
terms and conditions
in accordance with
prices of products
and services offered
by the website.
Various areas of law
take into account the
consideration, i.e. the
price. Such areas of
law include, contracts
law, law of torts
(negligence), equity,
and the like.
It should be explained that content (brand name, logo, images, videos, source
code, and the like) of the website is protected by applicable Intellectual
Property Rights (IPR), including, Patents, Copyrights, Trademarks, etc.
CON
TEN
T
IP Ownership & Third
Party Content
While drafting website
terms and conditions, it is
absolutely mandatory to
include provisions
specifying ownership of
Intellectual Property
(IP).
Website Terms – Drafting Considerations
www.techlaw.attorney
info@techcorplegal.com
IP Ownership
&
Third-Party Content
7
IP ownership provision shall
further state that copying,
redistribution, use or
publication by the user is
strictly prohibited except as
expressly allowed by other
section of website terms.
Website Terms – Drafting Considerations
Accordingly, such provisions explicitly define the company’s
ownership of website content. In addition, it is also advisable
to mention that certain website content may belong to third
parties, as and when applicable.
With regards to third-Party content, appropriate provision is
required within website terms and conditions to clearly state
that the business owner or company is not responsible or
liable for third party content in any manner, and does not
support or endorse the views stated in said third-party content.
www.techlaw.attorney
info@techcorplegal.com
Laws and regulations relating to
data privacy and data protection
are applicable to any business that
collects personal information from
an individual. In accordance with
provisions of applicable laws and
regulations, website terms and
conditions should include a
detailed privacy policy, which
shall explain appropriate provisions
to inform the user about collection
of such personal information and
data.
Furthermore, if a website uses cookies to
gather information about visitors of the
website, the users need to be informed about
the same, along with the purpose for which
such information is being collected, how
such information will be used, how such
information will be protected, and what all
steps can users take to get their
information removed from company’s
records. Moreover, it is also advisable to state
the applicable laws related to data privacy and
protection of personal data, and corresponding
rights and remedies available to the users.
Rahul Dev
Business Lawyer & Patent Attorney
He serves as Partner, Tech Corp Legal LLP, an International Law Firm focusing on
IP, Technology & Corporate laws, in addition to litigation practice.
He is also Director of Tech Corp International Consultants, a tech business
consultancy based in Singapore.
He works with multiple clients in India, US, EU, Singapore and other major
jurisdictions for various legal, technical and management consulting services
related to a diverse range of products and technologies, including Business
Structuring, IP (patents, trademarks etc.), Legal Documentation, Fundraising,
International Business Strategy, and related consulting services.
8 Website Terms – Drafting Considerations
Privacy Policy
www.techlaw.attorney
info@techcorplegal.com
Checklist: Do’s and Don’ts
•Incorporation of “I Accept” Button: One of the best ways to make
the terms accessible to users is by incorporating a click-through “I
Accept” or “I Agree” button, which must be completed before the
visitor can access the website.
•Define the Scope: It is always beneficial to assert the website
owner’s rights (including IP rights) and define what all users can do
and cannot do.
•Jurisdiction and Applicable Laws: With a view to avoid any
confusion, always specify the jurisdiction(s) that will be applicable
along with relevant laws.
•Collection of Information: Always explicitly state what all
information will be collected, how it will be collected and for what
purposes it will be collected.
•Legal Disclaimer: Always include a legal disclaimer to dissolve the
liability for the content and performance of the website.
•Viruses: The terms should clearly prevent the introduction of viruses
and should dissolve any liability on the part of the website owner if
anything from the website infects the visitor’s computer.
•Cookies: Always ensure that Cookies, which are used to identify a
user’s preferences, cannot be stored on a user’s computer without
informing the user and without obtaining the consent of the user.
•Storing Personal Information: It should be clearly stated to the
user (in case his personal information will be stored) that where the
personal information will be stored, i.e. either locally, or over cloud in
another jurisdiction.
Website legal audit can
help in detecting whether
the website is breaching
any laws, detecting
whether the website is
infringing any third party
rights, and ensuring full
www.techlaw.attorney
info@techcorplegal.com
Checklist: Do’s and Don’ts
•Incorporation of “I Accept” Button: One of the best ways to make
the terms accessible to users is by incorporating a click-through “I
Accept” or “I Agree” button, which must be completed before the
visitor can access the website.
•Define the Scope: It is always beneficial to assert the website
owner’s rights (including IP rights) and define what all users can do
and cannot do.
•Jurisdiction and Applicable Laws: With a view to avoid any
confusion, always specify the jurisdiction(s) that will be applicable
along with relevant laws.
•Collection of Information: Always explicitly state what all
information will be collected, how it will be collected and for what
purposes it will be collected.
•Legal Disclaimer: Always include a legal disclaimer to dissolve the
liability for the content and performance of the website.
•Viruses: The terms should clearly prevent the introduction of viruses
and should dissolve any liability on the part of the website owner if
anything from the website infects the visitor’s computer.
•Cookies: Always ensure that Cookies, which are used to identify a
user’s preferences, cannot be stored on a user’s computer without
informing the user and without obtaining the consent of the user.
•Storing Personal Information: It should be clearly stated to the
user (in case his personal information will be stored) that where the
personal information will be stored, i.e. either locally, or over cloud in
another jurisdiction.
Website legal audit can
help in detecting whether
the website is breaching
any laws, detecting
whether the website is
infringing any third party
rights, and ensuring full
www.techlaw.attorney
info@techcorplegal.com

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Ebook for Drafting Website Terms and Conditions - Guide for Best Practices Including Crucial Legal Considerations

  • 1. Drafting Considerations Guide covering crucial aspects to be considered while drafting Website Terms & Conditions Website Terms
  • 2. Contents 2 Title of the book 3 4 7 8 9 | Introduction | Limitation of Liability | IP Ownership & Third-Party Content | Privacy Policy | Checklist: Do’s and Don’ts
  • 3. Introduction A 3 Website Terms – Drafting Considerations s businesses and marketplaces transition towards new age mediums such as web and mobile, complexities surrounding them also continue to grow. Appropriate terms and conditions along with privacy policies are critical to every website and mobile application. Important considerations while drafting terms and conditions for websites and mobile applications are discussed herein. www.techlaw.attorney info@techcorplegal.com
  • 4. Limitation of Liability While drafting terms and conditions for websites and mobile applications, limiting the liability is extremely crucial as no business intends to be held responsible for misleading the consumers. Accordingly, by having appropriate liability clauses, businesses can limit the liability of the business, its directors, officers and employees. One way to limit the liability of a business is by explicitly stating in website terms and conditions that information published on the website, while assumed to be accurate, may in fact be incorrect, out of date, or inaccurate to some extent. This is due to the probable reason that any changes in business may not be implemented on the website in real time. Therefore, it is advisable to mention in website terms and conditions that the information is provided ‘in good faith’ on an ‘as is’ basis, which implies that the information should only be taken at face value and not be relied on to any extent beyond which the law requires. 4 Website Terms – Drafting Considerations www.techlaw.attorney info@techcorplegal.com
  • 5. 5 Another important way to limit the liability of business is to explicitly acknowledge the relevant provisions of applicable laws and agree to applicable rights and remedies available to the consumers of your business. If website is offering products and/or services, such rights should be clearly stated in accordance with laws of appropriate jurisdictions. Specifically, in case of online marketplace business offering products or services through third party vendors, it should be clearly stated as to who is providing such products or services, so that appropriate consumer rights and remedies can be accordingly decided. However, certain information, such as, for example, but not limited to, contact details, is required to be accurate by law across multiple jurisdictions. In addition, website terms and conditions should be drafted to exclude the company, its directors, officers and employees of any liability for any representations or possible warranties. Website Terms – Drafting Considerations www.techlaw.attorney info@techcorplegal.com
  • 6. 6 Furthermore, with a view to secure business’s interest and appropriately acknowledging consumer’s rights and remedies, balanced website terms and conditions shall be drafted to clearly state all the inclusions to limit the applicability of any implied conditions or warranties, to the extent as permitted by the law. There can be numerous cases where such exclusions can be applied, such as, for example, but not limited to, disclaiming any implied or express guarantees, warranties, representations or conditions of any kind, which are beyond the scope of transactions between the business and the consumers, error free accessibility and use of the website, and the like. Liability of business can further be limited by drafting website terms and conditions in accordance with prices of products and services offered by the website. Various areas of law take into account the consideration, i.e. the price. Such areas of law include, contracts law, law of torts (negligence), equity, and the like. It should be explained that content (brand name, logo, images, videos, source code, and the like) of the website is protected by applicable Intellectual Property Rights (IPR), including, Patents, Copyrights, Trademarks, etc. CON TEN T IP Ownership & Third Party Content While drafting website terms and conditions, it is absolutely mandatory to include provisions specifying ownership of Intellectual Property (IP). Website Terms – Drafting Considerations www.techlaw.attorney info@techcorplegal.com
  • 7. IP Ownership & Third-Party Content 7 IP ownership provision shall further state that copying, redistribution, use or publication by the user is strictly prohibited except as expressly allowed by other section of website terms. Website Terms – Drafting Considerations Accordingly, such provisions explicitly define the company’s ownership of website content. In addition, it is also advisable to mention that certain website content may belong to third parties, as and when applicable. With regards to third-Party content, appropriate provision is required within website terms and conditions to clearly state that the business owner or company is not responsible or liable for third party content in any manner, and does not support or endorse the views stated in said third-party content. www.techlaw.attorney info@techcorplegal.com
  • 8. Laws and regulations relating to data privacy and data protection are applicable to any business that collects personal information from an individual. In accordance with provisions of applicable laws and regulations, website terms and conditions should include a detailed privacy policy, which shall explain appropriate provisions to inform the user about collection of such personal information and data. Furthermore, if a website uses cookies to gather information about visitors of the website, the users need to be informed about the same, along with the purpose for which such information is being collected, how such information will be used, how such information will be protected, and what all steps can users take to get their information removed from company’s records. Moreover, it is also advisable to state the applicable laws related to data privacy and protection of personal data, and corresponding rights and remedies available to the users. Rahul Dev Business Lawyer & Patent Attorney He serves as Partner, Tech Corp Legal LLP, an International Law Firm focusing on IP, Technology & Corporate laws, in addition to litigation practice. He is also Director of Tech Corp International Consultants, a tech business consultancy based in Singapore. He works with multiple clients in India, US, EU, Singapore and other major jurisdictions for various legal, technical and management consulting services related to a diverse range of products and technologies, including Business Structuring, IP (patents, trademarks etc.), Legal Documentation, Fundraising, International Business Strategy, and related consulting services. 8 Website Terms – Drafting Considerations Privacy Policy www.techlaw.attorney info@techcorplegal.com
  • 9. Checklist: Do’s and Don’ts •Incorporation of “I Accept” Button: One of the best ways to make the terms accessible to users is by incorporating a click-through “I Accept” or “I Agree” button, which must be completed before the visitor can access the website. •Define the Scope: It is always beneficial to assert the website owner’s rights (including IP rights) and define what all users can do and cannot do. •Jurisdiction and Applicable Laws: With a view to avoid any confusion, always specify the jurisdiction(s) that will be applicable along with relevant laws. •Collection of Information: Always explicitly state what all information will be collected, how it will be collected and for what purposes it will be collected. •Legal Disclaimer: Always include a legal disclaimer to dissolve the liability for the content and performance of the website. •Viruses: The terms should clearly prevent the introduction of viruses and should dissolve any liability on the part of the website owner if anything from the website infects the visitor’s computer. •Cookies: Always ensure that Cookies, which are used to identify a user’s preferences, cannot be stored on a user’s computer without informing the user and without obtaining the consent of the user. •Storing Personal Information: It should be clearly stated to the user (in case his personal information will be stored) that where the personal information will be stored, i.e. either locally, or over cloud in another jurisdiction. Website legal audit can help in detecting whether the website is breaching any laws, detecting whether the website is infringing any third party rights, and ensuring full www.techlaw.attorney info@techcorplegal.com
  • 10. Checklist: Do’s and Don’ts •Incorporation of “I Accept” Button: One of the best ways to make the terms accessible to users is by incorporating a click-through “I Accept” or “I Agree” button, which must be completed before the visitor can access the website. •Define the Scope: It is always beneficial to assert the website owner’s rights (including IP rights) and define what all users can do and cannot do. •Jurisdiction and Applicable Laws: With a view to avoid any confusion, always specify the jurisdiction(s) that will be applicable along with relevant laws. •Collection of Information: Always explicitly state what all information will be collected, how it will be collected and for what purposes it will be collected. •Legal Disclaimer: Always include a legal disclaimer to dissolve the liability for the content and performance of the website. •Viruses: The terms should clearly prevent the introduction of viruses and should dissolve any liability on the part of the website owner if anything from the website infects the visitor’s computer. •Cookies: Always ensure that Cookies, which are used to identify a user’s preferences, cannot be stored on a user’s computer without informing the user and without obtaining the consent of the user. •Storing Personal Information: It should be clearly stated to the user (in case his personal information will be stored) that where the personal information will be stored, i.e. either locally, or over cloud in another jurisdiction. Website legal audit can help in detecting whether the website is breaching any laws, detecting whether the website is infringing any third party rights, and ensuring full www.techlaw.attorney info@techcorplegal.com