User Generated Content: Where’s the Value?

After looking at the material for weeks, I’ve finished my review of user generated content. It’s the driving force that has made youtube so popular and the source of many laughs. I’m sure we all shudder to think what the Web would be like without the “O RLY” owl, the “Cheezburger” cat and far worse elements. Joking aside, what’s the business value?

There are two issues to be considered before having any UGC discussions:

1. Legal

The legal concerns are far beyond my skills to effectively answer. However, several years of Web use has resulted in some pretty good search skills. In Safely Harnessing User Content, Alan Freil documents the various legal aspects of UGC including fair use, trademark considerations and viral marketing. I supplemented this work with a paper downloaded off of the Social Science Research Network on Online Word of Mouth. For those of you that are not familiar with SSRN, it’s a great resource for scholarly work across multiple disciplinary concerns.

In Online Word of Mouth and Its Implications for Trademark Law, Eric Goldman outlines the legal arguments surrounding word of mouth and possible “problems”. Keep in mind user generated content can impact brands, and a careful analysis of WOM issues is relevant to the UGC conversation. After reading this article, it became clear that this is a subject that demands attention from counsel.

2. Business, including reputation.

Much like technology, every business wouldhave to determine if there is value in UGC. Ultimately, individual organizations would have to determine if there is indeed value. Law firms? No way.

Often times, the reputation of the company is at stake. Take GM, for example. In an effort to promote their brand, a contest was launched to see who could create the best SUV commercial. I suppose GM executives didn’t anticipate environmental activists using the content as an opportunity to share their views. As reported by CNET:

One of the videos circulating around the Web featured shots of the Tahoe zooming through snow, mountains and desert. Over the video appeared the words: “Global warming isn’t a pretty SUV ad. It’s a frightening reality.”

Way to go GM. If you are releasing content to the wild, make sure you are protected. Reputation is something that takes years to build up and one incident to destroy.

Bottom line: research your community, get legal advice, determine if there is any value and, most of all, CYA.

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