Business and Pleasure—Who Owns Your Social Media Account?
When Social Media Crosses Business and Personal Accounts
Companies who do not use social media to advertise and market their businesses are now considered antiquated in the current technology-based world. In fact, many companies may require employees to have social media accounts, such as LinkedIn, and other companies run major portions of their business through Facebook, YouTube, and Twitter accounts. But what happens when the employee who manages or uses these accounts is fired, let go, or resigns? Two recent federal district court cases have explored issues related to ownership of these social media accounts that may mix personal contacts and networking with business purposes. In PhoneDog v. Kravitz, filed in the Northern District of California, a former employer, PhoneDog, sued its former employee when he left, and took his Twitter account with him. The Twitter account, though, included the employee’s first name and the company name and had 17,000 followers. The company filed suit, alleging misappropriate of trade secrets, interference with prospective economic advantage, and conversion, and sought damages, citing industry standards in claiming that each follower was valued at $2.50 per month.
In Eagle v. Morgan, filed in the Easter District of Pennsylvania, a co-found of the company created a LinkedIn profile using the company’s mandated format and in compliance with a company policy requiring employees to create such accounts. When she was fired, the company accessed her account and changed the password. The profile then redirected to the company’s interim CEO, and yet still listed the employee’s awards, honors, recommendations, and connections. The former-employee regained control of her account, but filed a pro se complaint alleging violations of the Computer Fraud and Abuse Act and various other claims. The company counter-claimed for misappropriation of the LinkedIn account and unfair competition.
In PhoneDog, the parties entered into a settlement agreement that allowed the former employee to retain his Twitter account and followers, but change the handle name. In Eagle, the court ruled in favor of the company, awarding $41,000 in damages and enjoining the former-employee from using the LinkedIn account.
So what is the bottom line? As with most disputes, both of these cases could have been avoided if the companies had clear agreements with the employees that defined who owned what and what happened to the accounts upon the departure of an employee from the company. Furthermore, while the company in Eagle had a social media policy, it did not incorporate this policy into formal agreements with employees. These types of agreements, for instance a Non-Disclosure and Rights to Work Product Agreement, are being upheld. And of course, the old adage continues for employees—take the trouble to keep your business and personal accounts separate and departures such as these can be a lot less painful.
For more information, please visit our Social Media Law service page.
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