AppId is over the quota
Launching a site from scratch can be a real pain in the rear given the fact it can take a long time for your efforts and money to pay off. Many people simply cannot wait that long, so they look to purchase pre-existing sites that are already well established and have strong positions in their niches. If you are considering such a purchase, it is vital that you think through many of the legal aspects of doing so.
What legal issues can arise in the purchase of a site? Well, there are more than a few. Most boil down to a few questions including, but not limited to, does the seller own certain aspects of the site under the law and exclusivity versus non-exclusivity.
How could the owner be selling a site they don't own? The issue is not one of intentional fraud. Instead, it is more an issue of the fact that world wide web doesn't really mesh well with established intellectual property law. For instance, let's assume the site was designed by a third party company that the site owner hired. Under copyright law, the designing company owns the copyright to the site unless it is assigned to the owner which often does not happen. Alternatively, you might be looking at a site that is based on a template the owner downloaded for free. While there is a license to use it, is there much value in it?
This brings us to our second issue - exclusivity. An exclusive item has much more value than a non-exclusive one. Don't believe me? Ask yourself if an original Picasso is worth more than a print of one of his paintings. Dilution drops value and this is true with websites as well. If a site is comprised of modules licensed from third parties, what is it really worth? There is no exclusivity. Another party could put the same pieces together and make the same exact site. Given this, is it a smart idea to buy the site?
Don't get me wrong. The design, format or software on a site might have little value, but the purchase might still make absolute sense. Consider eBay. A slightly successful site. It has all the design beauty of a warthog. The system is very simple all things considered. There are plenty of other auction sites out there offering pretty much the same technological abilities. Should you not buy eBay then? Of course not. If you had the money, it would be a tremendous site to own because it has a huge volume of market share and users. This is where the value is, not in what the site looks like or even how it works.
Purchasing an existing site can be a very good move or a very bad one. There is no absolute answer. The key is to know what you are getting into, think it through and then make a decision based on all the evidence before you. That means doing your due diligence.
Richard A. Chapo is with SanDiegoBusinessLawFirm.com - providing legal services for those will buy a site on the web this year.
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