Audit, Compliance and Risk Blog

Despite the pervasive Internet slogan that states, “Information wants to be free,” legal protection for copyrighted works online is thriving, even though the Internet may facilitate copying and access to information. Yet many people continue to misunderstand—or choose to ignore—copyright issues, especially in areas where recent technology is involved.

When a business or person is responsible for providing notice to another business or making that business aware of something, they must follow certain guidelines in conveying the information (e.g., sending it by registered mail on or before the required date), in order to show due diligence. Section 1-202(f) of the Uniform Commercial Code (U.C.C.) defines “due diligence” and “the exercise of due diligence” broadly. The U.C.C.’s requirements for “due diligence” include:

For many years, under the authority of the Children’s Online Privacy Protection Act (COPPA), the Federal Trade Commission has imposed special regulations on websites and online services that are either directed to children under 13 or whose owners or operators have actual knowledge that they are collecting personal information from children under age 13. On December 19, 2012, the FTC announced final, major changes to the COPPA Rule in response to advances in technology and internet use that have occurred since the COPPA Rule was first enacted.