Rubenstein Business Law Fiercely Protects its Clients
July 30, 2015
Supreme Court: No Patent for Doing Ordinary Things Online
March 4, 2015
‘Comparative advertising’ was close to the line but okay
November 19, 2015
‘Crowdfunding’ Businesses Have Obligations to Investors
April 8, 2015
More and more start-up businesses are seeking funding on websites such as Kickstarter or Indiegogo, promising small rewards to individual investors in return for micro-contributions.
These include the Veronica Mars movie, which raised millions of dollars by promising small contributors posters, DVDs and movie scripts, and a space telescope project that offered “space selfies.”
But keep in mind that these promises are a legal obligation – so if you end up getting hundreds or even thousands of contributors by offering small rewards, you’ll have to follow through on each one of them.
Recently, the state of Washington accused a Kickstarter company of reneging on its promise to send small contributors decks of horror-themed playing cards. The state is seeking restitution plus additional damages of $2,000 per contributor and the costs of bringing the suit.
Image courtesy of David Castillo Dominici at Freedigitalphotos.net.