A Lawyer Reads…the Facebook Terms of Service and Data Policy (Part 3)

In the modern, digital world, each of us is asked to read and accept hundreds of pages of terms and conditions governing the way we use our products and services.  While no one could be expected to read every term (especially for entertainment or other “low risk” services), as a specialist in reading and drafting such documents, a lawyer can offer insight into just how they operate (and what rights the average user gives away when they sign on the dotted line). 

In “A Lawyer Reads…”, we’ll take a deeper dive into a few of those little-read contracts, terms, and conditions in an effort to provide just a bit of that insight. 

For more, check out www.hoeglaw.com or drop Rick a line at rhoeg@hoeglaw.com.

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Today we finish our reading of the Facebook Data Policy with discussions on data deletion, what happens when the law comes calling, Europe, and more.

Interested in how we got here?  Check out Part 1 and Part 2!

Continue reading “A Lawyer Reads…the Facebook Terms of Service and Data Policy (Part 3)”

A Lawyer Reads…the Facebook Terms of Service and Data Policy (Part 2)

In the modern, digital world, each of us is asked to read and accept hundreds of pages of terms and conditions governing the way we use our products and services.  While no one could be expected to read every term (especially for entertainment or other “low risk” services), as a specialist in reading and drafting such documents, a lawyer can offer insight into just how they operate (and what rights the average user gives away when they sign on the dotted line). 

In “A Lawyer Reads…”, we’ll take a deeper dive into a few of those little-read contracts, terms, and conditions in an effort to provide just a bit of that insight. 

For more information, check out www.hoeglaw.com or drop Rick a line at rhoeg@hoeglaw.com.

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Today we continue our reading of the Facebook Data Policy with some of the most important questions facing the company and its users:  “How does Facebook use your information?” and “How is your information shared?”.

Check out Part 1 HERE.

Continue reading “A Lawyer Reads…the Facebook Terms of Service and Data Policy (Part 2)”

A Lawyer Reads…the Facebook Terms of Service and Data Policy (Part 1)

In the modern, digital world, each of us is asked to read and accept hundreds of pages of terms and conditions that govern the way we use our products and services. 

While no one could be expected to read every term (especially for entertainment or other “low risk” services), as a specialist in reading and drafting such documents, a lawyer can offer insight into just how they operate (and which rights the average user winds up signing away). 

In our “A Lawyer Reads…” series, we’ll take a deeper dive into a few of those little-read contracts, terms, and conditions in an effort to provide just a bit of that insight. 

For more information, check out www.hoeglaw.com or drop Rick a line at rhoeg@hoeglaw.com.

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This week, Facebook CEO Mark Zuckerberg testified before the United States Congress on matters ranging from data privacy to Facebook’s culpability in the fomenting of foreign genocides.

One strand of questioning that persisted throughout the entirety of his marathon interrogation, however, was whether an ordinary user of Facebook’s services could understand the company’s terms and conditions document.  In answering that he didn’t believe that most users read through such “click through” terms, Zukerberg opened himself up to a series of additional challenges.

But how “bad” are the Facebook terms really?

Continue reading “A Lawyer Reads…the Facebook Terms of Service and Data Policy (Part 1)”

Financing Term Sheet Deep Dive: Conclusion

Whether you’ve only recently decided to seek out capital for your business or you’ve already received (or made) your first offer, the term sheet (or “letter of intent”) is an integral part of the process.  

In this series we’ll look to shed some light on the legal language contained in that term sheet by taking a “deep dive” into the most often used terms and how choices made in selecting those terms can affect both Company and Investor.  Check out an overview here.

For more information, check out www.hoeglaw.com or drop Rick a line at rhoeg@hoeglaw.com.

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Here it is, the end of our “Financing Term Sheet Deep Dive” series.  In this post, we’ll discuss a few “straggler” term sheet provisions and offer concluding thoughts on the whole term sheet/financing process.

As we have these past months, we’ll begin each section by first looking at the model language itself.

Let’s get started.

Continue reading “Financing Term Sheet Deep Dive: Conclusion”

Financing Term Sheet Deep Dive: Rights of First Refusal and Co-Sale

Whether you’ve only recently decided to seek out capital for your business or you’ve already received (or made) your first offer, the term sheet (or “letter of intent”) is an integral part of the process.  

In this series we’ll look to shed some light on the legal language contained in that term sheet by taking a “deep dive” into the most often used terms and how choices made in selecting those terms can affect both Company and Investor.  Check out an overview here.

Financing Term Sheet Deep Dive will be published each Monday morning until conclusion. For more information, check out www.hoeglaw.com or drop Rick a line at rhoeg@hoeglaw.com.

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In this, the second to last post in our “Financing Term Sheet Deep Dive” series, we turn to the concepts of “First Refusal” and “Co-Sale”; two related ideas designed to limit changes to a Company’s capital structure after a financing has been concluded.

While both concepts are complicated enough to require their own definitive document as part of a closing (a “Right of First Refusal and Co-Sale Agreement”), they are simple enough to be summarized in the NVCA model term sheet in only one paragraph.

Let’s take a look at the model language.

Continue reading “Financing Term Sheet Deep Dive: Rights of First Refusal and Co-Sale”

Financing Term Sheet Deep Dive: Participation Rights

Whether you’ve only recently decided to seek out capital for your business or you’ve already received (or made) your first offer, the term sheet (or “letter of intent”) is an integral part of the process.  

In this series we’ll look to shed some light on the legal language contained in that term sheet by taking a “deep dive” into the most often used terms and how choices made in selecting those terms can affect both Company and Investor.  Check out an overview here.

Financing Term Sheet Deep Dive will be published each Monday morning until conclusion. For more information, check out www.hoeglaw.com or drop Rick a line at rhoeg@hoeglaw.com.

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As we get closer to the end of our “Financing Term Sheet Deep Dive” Series (only a few weeks left!) the rights and responsibilities at issue are generally less contentious.  That doesn’t mean that they aren’t important, or that they don’t affect the Company and its Investors.  It does mean, however, that the contours of the rights are a bit more “expected”; that there is, perhaps, a bit less to negotiate.

Today we discuss one of those “less contentious” rights: the right to “participate” in future equity sales of the Company.

Let’s take a closer look.

Continue reading “Financing Term Sheet Deep Dive: Participation Rights”

Start-Up Entrepreneur Series: Preferred Stock

In the Start-Up Entrepreneur Series, I will be taking a deeper look into some of the most common questions early stage founders face in putting together and operating their new businesses.  

The Start-Up Entrepreneur Series will be published each Wednesday morning until conclusion. For more information, check out www.hoeglaw.com or drop Rick a line at rhoeg@hoeglaw.com.

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Unless your new start-up is fully capitalized by its Founders, one of the first questions a new company must ask itself is “How are we going to fund this thing?”.

Last week we discussed the most common preliminary funding mechanism: “convertible debt“.  Today, we’ll talk a bit about the primary form in which institutions invest in start-ups: “preferred stock”.

Continue reading “Start-Up Entrepreneur Series: Preferred Stock”