Government Guidelines For Setting Up An Internet Business

At Bermuda Internet Marketing we only in engage in highly ethical practices and work hard to ensure our clients are always more than satisfied so we rarely have problems.  However, you cannot always expect this and clients and other internet marketing agencies need to be cognizant of the information below.

An internet business is in most regards no different to any other business. It must have a sound basis for operation both in terms of an operational plan and financial model. Having said that there are some additional elements that internet businesses should have regard. These are as follows:

1. The Electronic Transactions Act and the accompanying Standard.

The ETA may be found on Bermuda Laws and I enclose the Standard for your reference as the latter is of more relevance. All Bermuda-based internet businesses must have regard to the Standard. Any breach may bring action from the Minister…something that would affect the reputation of a business.

2. Intellectual Property Rights and web design and build issues

A number of Bermuda internet start ups have suffered from issues relating to the ownership of the intellectual property rights and web design and build issues. For example one business spent a great deal of money to build a website and when it was created the company who did the work would not transfer the website to the company until additional sums had been paid. Effectively they held the company to ransom. Any new business must ensure they contract with a reputable web design and build company and that a good contract is in place so that as work is done and paid for the ’software’ is handed over in source code form with no password protection or other ‘locks’. Also an agreement should be made to ensure that the ownership to the rights of the site that is built is given or licensed to the company. A written agreement is needed.

3. Trademark

Any business should spend time deciding on a good trademark and may need to register the same for protection. They must ensure that the trade mark they choose does not infringe an existing trade markin Bermuda. Internet businesses need also consider the potential issues of infringement overseas when that website targets a particular jurisdiction. For example a website operated and hosted in Bermuda by a Bermuda company that targets people in the US will be considered to be trading in the US and therefore if they choose a trade mark that aready is being used for the same goods and services in the US they may find themselves sued for trade mark infringement. This is particularly bad if the company has operated for some time using the mark as (i) damages will be more; and (ii) their customers will be used to a name they will have to change.

4. Tax

As stated above if you target a particular jurisdiction you may be considered to be trading there and therefore could well create tax liabilities in that jurisdiction. Great care must be taken with this and specialist advice should be sought.

5. Website legalities

Content should be vetted to ensure it does not infringe others rights or breach laws. Also terms and conditions should be created that bind all visitors to ensure that you limit liability and don’t start creating rights of action all over the World. A law and jurisdiction clause should be inserted at all times to prevent this.