Small Business Resources, Business Advice and Forms from AllBusiness.com

The Seven Sections of a Business Web Site's Terms of Use Agreement

Every business Web site can benefit from a terms of use agreement. It's one of the best ways to protect your online business from legal action.

Here are some key provisions your agreement

should include:

1. A description of what your site provides. For example, does your site provide advice, copyrighted material, a service, products, information, or a combination of these? Be as inclusive as possible; err on the side of including too much rather than too little.

2. Your copyright statement. This is where you delineate what is copyrighted and what is free for distribution. If you allow distribution as long as a link is provided, or if distribution is expressly forbidden, mention it here. You will also need to provide information on what action you will take if your copyrighted material be misused, copied or sold without authorization, or stolen.

3. The ownership agreement. This section states that you own the content, and explains what may or may not be done with the content. This is useful for sites that provide news, articles, information or similar content.

4. The disclaimer. This is particularly useful for businesses that provide advice or information. You can state that the information provided on your site is for entertainment, informational, or other purposes, and state what you will and will not accept responsibility for.

5. Liability statement. This is your opportunity to state that your site will not be held liable for use, misuse, problems, or other incidents that may arise as the direct result from either following advice, using information, or other use of the site or its contents.

6. Indemnification clause. This is usually the last part of your terms of use agreement, and should be written to protect your company from possible lawsuits that could arise from someone misusing your content.

7. Miscellaneous information. This is the place to include your company’s contact information and any other information not covered in the areas above.

How to Ensure Your Software Isn't Pirated
Host Hattie Bryant of Small Business School interviews Maggie Sanchez of Microsoft; and Mark Litvack and George Borkowski, intellectual property lawyers at the law firm of Mitchell, Silberberg, and Knupp in Los Angeles.