CLawBie Nominations

clawbie

The Canadian Law Blog Awards, a.k.a. the Clawbies, are a project started back in 2006 with the goal of highlighting great blogs published by the Canadian legal industry. Steve Matthews and his team at Stem Legal have been working to advance Canadian legal blogging. They just opened up the nominations for your favourite Canadian law blogs in 2009.

My old blog, KM Space, won a CLawbie in 2007, sharing the Friend of the North Award (Getting US bloggers to link into Canada.) with Jason Eiseman’s Jason the Content Librarian. KM Space shared the 2008 award with blogging superstar Mary Abraham’s Above and Beyond KM.

I am offering a few nominations for 2009.

SLAW.ca It’s hard to compete with the blog when it comes to Canadian legal content. They have all-star list of contributors to this and cover a broad swath of legal issues and the business of law.

Thoughtful Legal Management. David Bilinsky does a great job of looking at the business of law.

Canadian Privacy Law Blog. David T.S. Fraser puts together great content on the issues of privacy.

Unfortunately, I have not run across many Canadian legal blogs that address the issues of compliance I cover here at Compliance Building. Let me know if I am missing a good blog to read.

Positioning yourself for tomorrow’s social media today: Practical approaches for legal professionals

lexisnexis

Join me for a 60-minute Webinar at 11:00 am Eastern time on Wednesday, December 9. It’s free, sponsored by Martindale-Hubbell Connected.

The webinar will give you ‘real world’ examples of social media tools helping legal professionals become more efficient and productive. The panelists will also discuss the future of social media use – will we soon say goodbye to email?

The webinar panel includes a range of legal professionals and social media experts from across the globe:

You can register for the webinar here.

Learn real world examples of how social media tools help legal professionals be more efficient. Explore the future of social media.
Topics:

  • Time management: Finding the time.
  • Personal and professional development: Ways to research, share and learn by collaboration.
  • Future uses by of social media

Social Media: Policy Formation & Risk Management

Enterprise 2.0 San Francisco 2009

Today, I am in San Francisco at the Enterprise 2.0 Conference at the Moscone Center, speaking on a panel about social media policies.

I gave a presentation on Cloud Computing at the 2009 version of the Conference in Boston: Evening in the Cloud and Compliance and a presentation on blogging at the 2008 version of the Enterprise 2.0 Conference in Boston: What Blogging Brings to Business.

I was happy to hear that the conference was still interested in having me, even though I have been moving away from the Enterprise 2.0 space.

Here is the session description for today’s panel presentation:

Policy formation, risk management, media relations, and governance programs become a critical requirement as organizations assess implications to the enterprise arising from employee participation in social networking sites and use of media. Issues related to security, confidentiality, intellectual property, data loss protection, brand image, compliance, and human resources (i.e., ethics/conduct) are critical to address before problems arise.

  • e2 Moderator – Mike Gotta, Principal Analyst, Burton Group
  • Speaker – Christopher Burgess, Senior Security Advisor, Cisco
  • Speaker – Doug Cornelius, Chief Compliance Officer, Beacon Capital Partners (that’s me)
  • Speaker – Scott Mark, Enterprise Application Architect, Medtronic

First up, we plan to ask the audience whether they are interested in policy issue for internal deployments (Enterprise 2.0) or issues related to public uses (Web 2.0). The session description is broad enough that attendees may be expecting either. As it happens, most of the same issues are present in Enterprise 2.0 and Web 2.0. The conference itself has been including both. Since many of the innovations are coming from the public web 2.0 side, ahead of the enterprise side.

Rather than put the audience to sleep with a bunch of PowerPoint presentations, we are planning a discussion of the issues. Since I needed to organize my talking points, I figured I would make them into a blog post so that I could find them.

Having a Social Media Policy

From my perspective, the first thing a company needs to decide is what stance to take on the use of these tools: Pro, Con, or Neutral. Few companies are ready to fully embrace 2.0 tools.

Regardless of the stance it is important to have a policy for social media tools. Blocking access, by itself, is not a policy. It is easy to access the sites from a mobile device of home computer. Blocking access on the office network is just an annoyance.

The policy can also act as an educational tool for the employees of the company.

Security, Confidentiality, Data Loss Protection

These concerns are true for any communication media or portable storage.  Enterprise 2.0 and Web 2.0 do not pose unique challenges for these issues.

The difference is the main benefit you’ll hear at the Enterprise 2.0 conference; these tools make things more findable. Before Google, it was hard to find things on the WWW. Google changed that, making web content easier to find. Most Enterprise 2.0 platforms exploit some of the same things that make content findable. Remember that it’s not just the bad things that are findable. These tools also make the good things findable.

The importance of good policies and education is to make the good things vastly outnumber the bad things.

Off-Duty Activities.

What is personal? What is work? What is your time? What is the office’s time? Those are issues that most companies are wrestling with as the economy moves to more of a 24 hour economy. Regardless, an employer will have a hard time disciplining an employee for things they do “off-the-clock.” Here are some specific state laws on the topic.

Colorado – Colo. Rev. Stat. § 24-34-402.5: In Colorado, it is an unfair employment practice to fire employees for engaging in lawful activities that take place off the employer’s premises during nonworking hours unless (a) the activities engaged in relate to a bona fide occupational requirement or is reasonably and rationally related to the employment activities and responsibilities of a particular employee or a particular group of employees, rather than to all employees of the employer; or (b) the activities engaged in create a conflict of interest with any responsibilities to the employer or the appearance of such a conflict of interest.

New York – N.Y. Lab. Law § 201-d(2)(c): Employers in New York cannot take any adverse action against an employee on account of that employee’s engagement in legal recreational activities if the employee engages in the activities outside of working hours, off of the employer’s premises, without using the employer’s property.

North Dakota – N.D. Cent. Code § 14-02.4-03: Employers may not take adverse action against an employee or applicant on account of the employee’s or applicant’s “participation in lawful activity off the employer’s premises during nonworking hours which is not in direct conflict with the essential business-related interests of the employer.”

Overtime

If hourly employees are using these tools off hours for the benefit of the company, there is a potential wage claim.

Data Privacy

The European data privacy laws need to be considered as part of a Web 2.0 or an Enterprise 2.0 deployment. These data privacy laws regulated the collection of personal information and the transmission of the personal information to another country.

In the US we think of data privacy as social security numbers and financial account information. Medical information has also fallen into that category. But the European view of personal data is as much about your religious and ethnic information as it is about those other categories of information.

A deployment as simple as publishing an internal photobook of personnel would violate the European data privacy laws.

First Amendment

The First Amendment protects citizens from government censorship. First Amendment rights will apply if you work for the government. Otherwise, employees are generally free to exercise their First Amendment rights as ex-employees.

Internally, it is best to avoid religious and political discussions. (Unless your organization is a religious or political organization.)

Labor Relations and Union Organizing Activity

While employers are permitted to lay out policies as to what employees may blog about in relation to work, employers cannot implement policies that have the effect of chilling an employee’s exercise of his or her Section 7 rights under the National Labor Relations Act-, nor can employers discipline employees for blogging about “wages, hours, or terms or conditions of employment,” such as the company’s pay scale or vacation policy. See Timekeeping Sys., Inc., 323 N.L.R.B. 244 (1997).

Additionally, outright bans on blogging about the employer will likely be viewed as an unreasonable impediment to self-organization in violation of the NLRA. See Konop v. Hawaiian Airlines, Inc., 302 F.3d 868 (9th Cir. 2002), cert. denied, 537 U.S. 1193 (2003) (In this case, the court found that blogging that involved an employee attacking his company’s management and president online may trigger “concerted activity” provisions under federal labor laws.).

Anonymity

Although staying anonymous (or using pseudonym) sounds like a good way to keep out of trouble, it’s hard to stay anonymous on the internet for long if someone wants to find you.

Internally, there is little need to be anonymous. I have heard example of feedback tools that preserve anonymity.

One example of the issues that come from anonymity/pseudonym is the Cisco Patent Troll Tracker blog case.

Identifying Your Employer and Use of Company Name or Company Logo

Once you identify yourself as an employee of the company, what you publish will be associated with the company.

One should also consider what happens to Web 2.0/Enterprise 2.0 content when an employee leaves. Internal is easier to deal with since the employee has left. It is easy enough to keep the content published and the user id showing that the person left the company.

With Web 2.0, there are more issues to consider. Can the employee take a blog with them? If it is on their domain, the company will have a hard time stopping them from taking it with them. If the blog is on a company domain or subdomain, it’s probably going to stay with the company.

Productivity Drain

There are some legitimate concerns that employee productivity will be diminished when they are allowed to use web 2.0 tools or Enterprise 2.0 tools are deployed internally. You need to be prepared to address these concerns.

Recommendations

A true recommendation is generally a good thing. There are specific regulatory limitations for lawyers and registered investment advisers using public recommendations.

If a supervisor gives an employee a good recommendation on LinkedIn, it will be hard to later discharge the employee for poor performance.

Criticizing the Company

Some criticism can be considered whistle-blowing and be subject to legal protections. If the employee’s negative comments concern the employee’s reasonably held belief that the company is engaging in illegal activity, the employee may also be protected under whistleblower protection laws.

Monitoring and Discipline

One of the key reasons for adopting a policy is to discipline for bad behavior. The policy sets the behavior standard. Employees are expected to live up to that standard.

The other use of the policy is for eduction. The better purpose for a policy to prevent the person from partaking in the bad behavior at the onset.

Using E 2.0 tools to Draft

One thing I encourage is to use the enterprise 2. 0 tools to help draft the policy. Put a draft policy up on a blog for comment.

Examples of Social Media Policies

Here are some good examples in helping to draft your own policy:

Further Reading on Social Media Policies

Some more reading for you:

Doug’s Collection of Social Media Policies and Articles:
http://delicious.com/dougcornelius/blogging_policy

FINRA and Social Networking

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Wall Street bankers and analysts increasingly want to use social networking to connect and interact with customers. But financial services companies have a hard time trying to comply with the compliance and regulatory requirements.

Social networking sites such as Facebook, Twitter and LinkedIn provide new ways for financial service firms to connect, inform and interact with their customers. They also raise new compliance challenges. As currently designed these sites may not allow you to archive and maintain the communications on your own books and records.

Apparently FINRA understands this. At the Securities Industry and Financial Markets Association Annual Meeting on October 27, 2009, FINRA Chairman and CEO, Rick Ketchum announced that they had formed a Social Networking Task Force. The group is comprised of industry participants to explore how regulation can embrace technological advancements in ways that improve the flow of information between firms and their customers—without compromising investor protection.

So how does that explain the absence of social networking sites in the latest proposed changes to FINRA’s communications rules?

References:

One in Two U.K. Companies Block Social Networking Web Sites

fulbright trends

Fulbright & Jaworski, the international law firm, just published their 6th Annual Litigation Trends Survey Report. It is an independent survey of senior corporate counsel from a wide range of industry sectors.

About half of the respondents (52% of U.K. and 46% of U.S.) claim to block employees from accessing social networking Web sites. Two in five of all corporates (42%) block the most popular personal social networking sites (such as Facebook, MySpace and Bebo) and 30% block business-related networking sites (LinkedIn and Plaxo). The YouTube web site is also blocked by more than a third of companies (37%).

Only 1/3 of the companies reported that they have no restrictions on access. Technology companies are the least likely to block social networking sites, with 56% of all tech companies saying they have no restrictions on such sites.

I found it interesting that 18% of U.K. companies have been asked to produce electronic information from such web sites as part of an electronic discovery request in legal proceedings.

Melanie Ryan, a Fulbright partner, commented, “For some businesses, networking sites can provide an efficient platform for keeping up-to-date with the latest developments and maintaining a profile in their industry. For those businesses that block access, such benefits are outweighed by the possible legal risks, including the inadvertent disclosure of confidential or proprietary information and the resulting claims or fines imposed by their regulators – not to mention, the security threat to their IT systems.”

But do they have a policy in place to let employees know what they should not be doing on these sites? Or are employees just doing those bad things at home or on their iPhone?

Blocking is not an effective policy.

fullbright-findings

Web 2.0, Knowledge Management and Professional Development

Mark Frydenberg

Mark Frydenberg is teaching a new, experimental class at Bentley University’s: CS 299 – Web 2.0: Technology, Strategy, Community. I am the experiment today, telling my story to his students.

The focus of my presentation will be how I learned about Web 2.0, started using it as a knowledge management tool and how I now use Web 2.0 for my professional development.

If you want to listen and watch, there will be a Ustream video. It should be on Checkmark’s Ustream at 11:20.

We will be watching the Twitter hashtag #cs299. Send any questions you want me to ask a roomful of college students learning about Web 2.0 by using CS299 in a Twitter post. Class starts at 11:20.

I gave them this reading list to give them some background on the topics I intend to cover. You can also see what the students have been doing by checking out their Class Blog and Discussions.

Below is the slidedeck I put together for the class:

The slides are mostly visual so you may find it more useful to see my notes that go along with each slide. The slides with the notes are available at JD Supra: Web 2.0, Knowledge Management and Professional Development.

Calendars and Household Compliance

household calendar small
View of our household calendar

It is hard to keep track of who is doing what with a busy family. You can’t show up on time and do what you are supposed to do if you don’t where you are supposed be.

My work calendar runs on an Exchange / Outlook platform, as does The Wife’s calendar. Now that The Son and The Daughter are getting their own activities, it is getting harder and harder to figure out who is supposed to be where.

The Wife and I could just copy each other for all of the events. But then our calendars would be mucked up with events that one of us is going to, but not the other. It’s also easy to lose track of the kids’ events.

We decided to use the Google Calendar application. It allows us to have separate calendars for me, The Wife, The Son and The Daughter. We even set up a separate calendar for family and friend birthdays.

The Google Calendar allows us to use a different color for each person so we can easily distinguish who belongs to a particular event. That’s a great visual clue and makes the mess of events easier to sort through.

On the settings for the calendar, you can assign different permissions: (1) make changes to events, (2) see all event details or (3) see only fee/busy. Even an unruly teenager should be able to be convinced into sharing their calendar if their parents couldn’t see the details.

When an event intrudes into the work day, we invite the work email to the event. Google Calendar plays nice with the Exchange/Outlook platform so the invitations from Google Calendar appear as calendar events at work and vice-versa. I try to keep the non-working hours events out of my office calendar.

By using separate Google calendars, each person can control their own calendar, while at the same time sharing the events with the whole family. It’s little or no extra effort and makes household management much easier.

Since the Google Calendar is web-based, I can use it at work and view the calendars on my blackberry or iPhone.

This post was based on a previous post from my old blog, KM Space: Calendars and Household Knowledge Management.

FINRA Is Thinking About Changing Its Communications Rules

finra_logo

Financial Industry Regulatory Authority (FINRA) posted a regulatory notice  on proposed new rules governing member communications with the public: Regulatory Notice 09-55.pdf-icon

The new rules would replace current NASD Rules 2210 and 2211, the Interpretive Materials that follow NASD Rule 2210, and portions of Incorporated NYSE Rule 472.

The proposal would replace the existing six categories of communication with three new communications categories and revises certain approval, filing and content requirements. These changes make the rules easier, but seem to make it harder for FINRA members to participate in social media. I am surprised that FINRA did not try to squarely address the use of the popular internet and web 2.0 tools.

Communications Categories

Currently NASD Rule 2210 divides communication into six separate categories:

  1. advertisement
  2. sales literature
  3. correspondence
  4. institutional sales material
  5. independently prepared reprint
  6. public appearance.

The principal approval, filing and content standards apply differently to each category.

FINRA is proposing to consolidate those six categories into the following three:

  1. institutional communication, which would include communications that fall under the current definition of “institutional sales material,”
  2. retail communication, which would include any written communication that is distributed or made available to more than 25 retail investors
  3. correspondence, which would include any written (including electronic) communication that is distributed or made available to 25 or fewer retail investors

Communications that currently qualify as advertisements and sales literature generally would fall in the proposed retail communication.

Approval Requirements

The proposed rule changes would require an appropriately qualified registered principal of the firm to approve each retail communication before the earlier of its use or filing with FINRA.

Filing Requirements for New Firms.

FINRA rules currently require a firm that has previously not filed advertisements with FINRA to file its initial advertisement with FINRA at least 10 business days prior to use, and continue the practice for one year after the initial filing. The proposed rule would require filing of all retail communications  (the new category), rather than just advertisements. The proposal would have the one-year filing requirement beginning on the effective date a firm becomes registered with FINRA, rather than on the date an advertisement is first filed with FINRA.

Pre-Use Filing Requirement.

The proposal would expand the current pre-use filing requirements so that communications concerning any registered investment company that includes self-created rankings, and retail communications that include bond mutual fund volatility ratings would have to be filed with FINRA at least 10 business days prior to first use and withheld from use until changes specified by FINRA staff have been made. The proposal would expand the filing requirements for materials relating to closed-end investment companies to include retail communications distributed after the fund’s initial public offering.

Press Releases

The proposal eliminates a current filing exclusion for press releases that are made available only to members of the media. Most firms post press releases on their Web sites, making them available to the general public.

Content Standards

The Proposal reorganizes, but largely incorporates, the current content standards applicable to communications with the public. Content standards that currently apply to advertisements and sales literature generally would apply to retail communications.

Public Appearances

Public appearances would have to meet the general “fair and balanced” standards and the standards applicable to recommendations
if the public appearance included a recommendation of a security. If you recommend securities in public appearances generally you would be subject to the same disclosure requirements under proposed FINRA Rule 2210(f) as research analysts that recommend securities in public appearances pursuant to NASD Rule 2711(h). The proposal requires firms to establish appropriate written policies and procedures to supervise public appearances, andmakes clear that scripts, slides, handouts or other written and electronicmaterials used in connection with public appearances are considered communications with the public for purposes of proposed FINRA Rule 2210.

The comment period for the proposed rules ends November 20.

References:

Updated FTC Guidelines Affect Testimonial Advertisements, Bloggers, Celebrity Endorsements

On October 5, the FTC released their updated guidelines to advertisers on how to keep their endorsement and testimonial ads in line with the Federal Trade Commission Act.

The guidelines were last updated in 1980. Clearly technology and publishing has changed significantly in the past 30 years.

The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.

By the way, I don’t receive any income, advertising dollars or free product in connection with ComplianceBuilding.com. If do, I’ll let you know when I write about it. (Feel free to send that new BMW for me to review.)

The other interesting aspect of the Guidelines is how they treat celebrity endorsers. The revised Guidelines make it clear that celebrities must disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media. I am waiting to hear the first disclaimer on Regis and Kelly.

Text of the Federal Register Noticepdf-2