Ellen Carson has written a series of books for the children which narrates the Adventure of a 4years dinosaur called Ellasaurus. Although successful, Ellen is advised by her business advisor to create a merchandising business of the Ellasaurus dinosaur and character. She therefore creates Ellasaurus Products Enterprises (EPE) that deals with stuffed animals, toys, pajamas, coloring books as well as Halloween costumes. Despite having retailers for her products, there is the major issue of unwillingness by retailers in taking up unproven new products. In addition, Ellen wants to create a website for EPE which will mainly sell to customers directly and build customer loyalty. The website is envisioned to have different portal features such as chat rooms, online games, email accounts and anything to promote her products. Ellen wants products for EPE to appeal to the same age group (4-6) just as her series of book and has visited different websites for ideas to make sure her website is appealing to her users. However, different issues face her such as: registration information of the websites’ visitors for email purpose, and others.
However, to expand knowledge on Ellen’s idea and as a recommendation, it will be important for Ellen to sell her products in different parts of the world apart from just U.S. In addition, Ellen should take strict consideration on security issues of her website since security is one major issue in electronic commerce. She should find ways on how to avoid security vulnerabilities as well as the use of different Intrusion detection systems. Although this will be costly, in the long term, it will be beneficial to the her websites information as well as products for it may protect her from a huge disappointment or loss as hackers or any other security flaw happens to inflict on her website. This will not only protect her information but also protect from loss of clients as they lose confidence in her products and services.
1. Ellen will use some copyrighted illustrations from her books on the Web site. She will also include themes from the story lines of her books in some of the games that will be available (free) on the site to registered visitors. Prepare a report of about 300 works in which you discuss at least two intellectual property issues that might arise in the operation of the Web site.
It is important to note that, internet security is very vital for the protection of one’s important information (Cross & Miller 308). For this reason, it is vital for Ellen to consider some of the various issues and methods of protecting intellectual properties for her online products. However, there are various issues that will arise concerning during her online operation. Most of these issues are major concerns of the copy right laws and which are vital for Ellen to consider.
One example of the intellectual issues that may arise in her operation include her relation of her websites ideas, contents, illustrations and any other features used in the website. Ellen will need to ensure that her work is original and does not take other people’s ideas into her website. For this reason should ensure that any use of copyrighted material will not violate any of the intellectual property laws. She should therefore seek permission or be authorized by the owner of any material she used that is copyrighted such as the name of the publishers book. Ellen’s work will need to be original from her own creativity.
Another major issue that will arise will be based on the online games for her audience. These games must be proprietary. However if they are from different other websites, Ellen should ensure she acquires authorization in advance from the owners. Ellen is not allowed to display into her website any copyrighted or proprietary content from other people’s website without permission. She should ensure that she obtain permission in advance as well as follow legal formalities before she can use any sources/ materials. Ellen will also feature how she will protect her own information from basing on the copyrighted law. She can use different methods of copyrights such as digital watermarks or even the digital signature.
2. In about 200 words, describe the ethical issues that Ellen faces because of the ages of her intended audience members.
According to Schneider, ethical issues are imperative issues that should be considered when online businesses are considering making policies and decisions (Schneider 329). One important ethical issue revolves around selling of illegal products or information to the audience (Cross & Miller 76). Ellen is bound not to sell any illegal products and especially considering the age of which her products appeal to. Therefore, the primary ethical issue that Ellen should consider includes information and product for her website and the age group in which the products target. Due to the age (4 years to 6years) of her targeted audience, it will be ethical for her to develop the website and its contents carefully to fully cater for the needs of the kids. Children visiting the websites should have a feeling that it’s their website with contents that are understandable and helpful rather than misleading to the children. Therefore, any message of her website should be carefully placed to ensure that it does not impart the wrong image of message to the small children but adds to their knowledge other than resulting into any harm. For instance, Ellen should not incorporate any pornographic materials in her website content. Additionally, another major ethical concern will revolves around on how the website will limit the use of personal e-mail address and any other information which should be protected (Schneider 329).
3. In about 300 words, outline the laws with which the site must comply when it registers site visitors under the age of 13. Include recommendations regarding how Ellen can best comply with those laws.
Electronic laws are very important from any information of any age group. These laws are usually grounded by relationship that exists between impact or effect of individual behavior and physical proximity (Schneider 313). Most online websites has strong effects on individual and it’s therefore the responsibility of the government to to provide protection acts to guide all websites. On this note, there are different laws which people aiming at developing websites should comply with depending on the kind of websites and the audience. In this case, since Ellen will deal with the age group below the age of 13, she will be obliged to comply with the Children Online Privacy Protection Act of 1998 (COPPA) (Private Right Clearing House 1). This is U.S act that usually covers all those websites which are expressly meant for children. In addition, this act covers any other website that has knowledge which it collects children information. Since Ellen’s website allows kids to use interactive information and communication tools, she must comply with COPPA.
In recommendation, Ellen should therefore post in her website’s home page a comprehensive and clear privacy policy which will describe children’s personal information practices, such as the type of information that her website will collect for children, such as name, age, address, hobbies, and e-mail. She should also explain in her website how website uses the information as well as how the information will be collected, either through cookies or directly. Most important, Ellen should provide immediate notice to the children’s parents so as to obtain their consent before she collects the children’s personal information. Also, the same parents should be provided with access to their children’s personal information for review. The parents should also be given the opportunity to disallow any further use of their children’s personal information (Private Right Clearing House 1).
4. In about 300 words, describe the sales tax liabilities to which the Web site will be exposed. Assume that Ellen will operate the site from her home office in Michigan and that EPE will manufacture the merchandise in Texas. The merchandise will be warehoused in EPE distribution centers in New Jersey, Ohio, and California.
Sales tax is usually levied on the transactions of different goods sold to consumers. Ellen, by assuming that she is operating from her home office and Texas being the base where merchandise product is manufactured, she must therefore file for sales tax returns where she will remit all the sales tax that she will collect from all her customers. Since she will ships her merchandised products to other states such as New Jersey, Ohio, and California, she will not be required to take any sales tax from New Jersey, Ohio, and California unless there is some nexus established between the them. However, Ellen will be liable for paying of tax use that will be equivalent to the amount that her business will have collected as local business sales tax.
The website will therefore be liable to paying sales tax on sales made to Ohio, Jersey, California, as well as from her office home, Michigan.
Work Cited
1. Cross, Franck., & Miller, Roger, L. The Legal Environment of Business Text and Cases , Ethical, Regulatory, Global and Corporate Issues (8th edition) Moson, OH: South Western Educational Publishing, 2008.
2. Private Right Clearing House. Fact Sheet 21: Children’s Online Privacy:A Resource Guide for Parents. 16 Nov. 2011.web 2008.
<https://www.privacyrights.org/fs/fs21-children.htm>
3. Schenk, Katie and Jan Williamson. Ethical Approaches to Gathering Information from Children and Adolescents in International Settings: Guidelines and Resources.Washington, DC: Population Council, 2005.
4. Schneider, Gary. Electronic Commerce. 16th Nov. 2011.web 2004.
< http://books.google.co.ke/books?id=g07-6iLuacgC&pg=PA345&lpg=PA345&dq=Ellen+Carson-+two+intellectual+property+issues+that+might+arise+in+the+operation+of+the+Web+site.&source=bl&ots=J97Cam9NZw&sig=GOfmX7wwgD9A7OJb7negvyK_pL4&hl=en&ei=7iDBTorXE-7c4QS-o939Aw&sa=X&oi=book_result&ct=result&resnum=6&ved=0CE8Q6AEwBQ#v=onepage&q=Ellen%20Carson-%20two%20intellectual%20property%20issues%20that%20might%20arise%20in%20the%20operation%20of%20the%20Web%20site.&f=false>
