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Legal aspects of software and website development
 I am distributing online software for internet end users. What legal documents should the user agree to prior to downloading the software?
 What should be included in the Privacy Statement?
 I was offered to distribute my software through a "bundle" with another software. What are the legal implications of such method of distribution?
 I am marketing my software through popup advertising. What should I pay attention to from legal standpoint?
 I advertise through search engine sponsored links. Are there any words I may not use?
 I would like to design my website similarly to a competitor's website. Is it permitted?
 Is it permitted to register a domain name which consists of a third party trademark?


I am distributing online software for internet end users. What legal documents should the user agree to prior to downloading the software?
When an end user downloads online software, during the download process you must obtain the end user's consent to the terms of the Terms of Use/End User License Agreement. It is recommended that you obtain legal advice with respect to the drafting of the License Agreement since it is a binding legal agreement. According to the current industry standards, it is recommended to incorporate the License Agreement in a scroll box presented to the user during the download process, and not through a link which the user has to click.
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What should be included in the Privacy Statement?
As a general rule, you must be honest with your end user and provide full disclosures. This rule applies also on the Privacy Statement (sometimes referred to as Privacy Policy). Thus, you must include in the Privacy Statement any relevant information which may be of interest to the user in connection with the user's privacy. The Privacy Statement is a binding legal document (usually incorporated by reference into the End User License Agreement) so it is advisable to obtain legal advice in connection with its construction and drafting.
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I was offered to distribute my software through a "bundle" with another software. What are the legal implications of such method of distribution?

Offering one software together with the download of another software ("bundle") has become a popular practice in recent years. Business wise, it is a great distribution method - the user who chose to download a certain software is already in a state of mind to accept downloads so when during the installation he is offered to download another software (to which I shall refer to as the "bundled software"), he is more keen to accept the offer. In principle, it is not forbidden to use such practices and the largest internet companies cooperated in such manner (for example Google Toolbar was distributed that way together with Real Player). However, it should be done in a careful and non-aggressive manner. The user should be provided with a clear choice regarding the download of the bundled software and with adequate explanations and disclosures (besides accepting the End User License Agreement) about the features of this software. These principles apply to even greater extent when the bundled software consists of components which may seem potentially problematic in the eyes of the user. In conclusion, if the user experience does not allow the user to take a conscious decision whether he wishes to download the bundled software, the download was obtained by inappropriate means, which is unlawful. Besides the pure legal aspects of the situation, also from business standpoint this practice may turn out problematic, because such behaviour will likely ruin the goodwill of the bundled software and has the potential of adding it to the list of bad software detected by anti-spyware companies (which see "bundling" as a practice commonly used by spyware applications). Thus, you should review bundling business opportunities with great scrutiny and be careful in this respect.


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I am marketing my software through popup advertising. What should I pay attention to from legal standpoint?
The use of popup advertising is visually attractive and thus it has become a popular marketing tool.  In view of the widespread problem of spyware applications which sneak into the user's computer in unlawful methods, display popups without the user's consent and without allowing the user the ability to disable the popups, you must be extremely careful in using popup advertising campaigns. Since there are usually intermediates involved in the operation of the marketing campaign (such as the ad networks), there may be parties involved in running the campaign with whom you are not aware of and have no contractual relationships with. Thus, you must obtain proper legal advice before launching the campaign and make sure that the contractual relationships with the ad networks your retained provide you with reasonable legal resources in the event that your popups are used in inappropriate media.
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I advertise through search engine sponsored links. Are there any words I may not use?

The use of a competitor's trademark as a keyword triggering your sponsored link ad may be problematic. As of today (August 2006), the US case law in this regard is not conclusive. In Israel there is one recent judgment of the Tel Aviv District Court in the matter of Matim Li v. Crazy Line and Google (click here to go to our review of the judgment in the Israeli case law section of the website). In this judgment, Justive Altuvia ruled that there is nothing wrong in this practice. Nevertheless, we believe that trademark proprietors may try to overturn this ruling (also in other cases on this issue), and this issue might reach the Supreme Court, and until then it is not safe to say that the case law in Israel is conclusive. Thus, it might be a dangerous act on the part of an advertiser to use this practice, since it may lead to potential claims against it. Also, if the search engine is dragged into such legal action, the contractual relationships between search engines and advertiser usually provide that the advertiser is solely responsible with respect to such circumstances that lead to a claim, and is also responsible to indemnify the search engine for its costs in this regard. Thus, when the search engine and advertiser are both dragged into a claim, eventually if liability is found, the advertiser will bear the full responsibility.
In view of the above, advertisers should take these risks into consideration and take a conscious calculated business decision in this respect.


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I would like to design my website similarly to a competitor's website. Is it permitted?

Basically, the question is circumstantial and legal advice is necessary. Nevertheless, as a general rule, copying a comptetior's website will most likely be found to be a violation of the competitor's intellectual property rights, as it may potentially be found as copyright infringement, passing off or unjust enrichment.


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Is it permitted to register a domain name which consists of a third party trademark?
No. Using a third party trademark in a domain name (a practice also known as "cybersquatting") is bad practice which was popular in the late 90's, when it was not clear to everyone how cyberlaw will adopt general principles of the law. However, the courts worldwide and in Israel made it clear that trademark laws apply in the internet and that cybersquatting is bad practice which is meant to take a free ride on another's goodwill and, thus, should be condemned.
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