LAW PRACTICE
TWEET DEALS
Social networks spawn legal work
By Rachel M. Zahorsky
AS LAW FIRM LAYOFFS CONTINUE AND CORPORATE LEGAL WORK lags, some advertising, marketing and promotions attorneys haven’t had any trouble keeping busy—thanks to the increased popularity of social networking websites and the proliferation of user-generated content on the Web.
Winston & Strawn’s 10-attorney group in Chicago fields daily calls from
many of the 200 brand owners and advertising agencies it represents that
want to target the expansive base of users on sites like Facebook, You Tube
and Twitter as cheaper alternatives to costly television and print campaigns.
Associate Marc Trachtenberg says that in 2009 the group was busier than
in ’08. “We could work 24 hours a day if we wanted to.”
“Companies are realizing they don’t have $2 million to spend on an ad-
vertising campaign,” Trachtenberg says, “but they do have $50,000 to spend
on an Internet sweepstakes, which they can highly promote through various
channels and advertising networks.” Internet marketing via social media
platforms also allows advertisers to directly engage customers.
Although user-generated content is less expensive, rapid shifts in technology and constant regulation changes from the Federal Communications
Commission and other federal and state agencies can make utilizing it
thorny for clients.
“Clearly there has been an expansion in the field with mobile technology
and social media,” says Ed Kabak, chief legal officer of the Promotion Mar-
keting Association in New York City. “This brings a lot of legal questions
regarding privacy, copyright and trademark issues.”
As brands seize on the new media channels and incorporate citizen blog-
gers and Internet message boards into their advertising proposals, the rela-
tionship between advertiser and consumer can become difficult to identify.
So can the rules governing them.
Additionally, many companies
are unsure of how to self-regulate
Internet campaigns and interactions
with third parties on the Web.
“A lot of clients still don’t have
social media policies,” says partner
Brian Heidelberger. “And those
that do are sometimes unrealistic
about them, don’t properly vet
them through their entire organizations and consumers, or don’t think
them through.”
STARS STRIKING DEALS
INCREASED COLLABORATION BE-
tween celebrities and consumer
product companies and more aggressive advertising campaigns in
response to fewer shopper dollars
have also boosted clients’ reliance
on the practice group’s expertise.
The group’s celebrity branding
includes negotiating endorsement
deals between NBA guard Dwyane
Wade, soccer player David Beckham
and entertainer Madonna with
T-Mobile USA and Motorola—a
form of entertainment law no longer relegated to New York City and
Los Angeles.
“Ten years ago you wouldn’t have
seen a world-famous rapper create
his own vodka. If you had said that,
people would have laughed at you,”
adds Trachtenberg, referring to hip-
hop impresario Sean Combs’ project
with the Cîroc
brand of vodka.
“Now, you don’t
think twice
about it.”
The explosion
of mobile phone
apps presents the
latest challenge
to the group, and
it will continue
to expand, Hei-delbergerp re-dicts. And as the
battle for consumer attention and
dollars pushes
clients to more
aggressive marketing tactics,
he expects even
more client
phone calls. ■
