Beyond this fundamental definition of rights and obligations, the parties should also define their relationship. Business contracts often bind the parties to other obligations outside the boundaries of the agreement. For example, an employer-employee relationship creates obligations for taxes and workers compensation, and may create liability for an employer in the event of an employee s negligence. Most internet relationships can be worded to eliminate these issues. The principles of independent contracting are easily defined and should be incorporated, when possible.
Many internet relationships create accessibility by both parties to the other s database.
Beyond basic copyright and patent principles, the information may be protected through written agreement. Contracts should incorporate a devise which identifies data, ideas, marketing plans and artwork as proprietary information. As long as information is properly classified, a court can prevent its improper use and award damages against the pirating firm. The primary problem for a nascent entrepreneur in any environment is its exposure to competition. As stated above, the internet spectrum is transitory by nature.