Legal Issues in Web Development And How To Avoid Them (Before You Lose Profit)

No matter which industry you’re in, it’s important to be aware of prominent legal issues. Not only do we live in an increasingly litigious world, but many industries bear a great deal of regulatory scrutiny, making it all too easy to run afoul of some law or ordinance that winds up eating into your time and profits.

The most common legal issues in web development include things like intellectual property, licensing and contract agreements, cybersecurity, and of course user privacy. To protect your web development business, it’s helpful to know a bit more about what these different issues are, and about the steps that can be taken to mitigate them while focusing on building websites. Here is a legal-focused website planning guide.

Table of Contents:

• Responsible Web Development: Legal Guide to Web & Software Development
  • Intellectual Property Rights
  • Copyrighting and Trademarks
  • Business Structuring and Lawsuit Prevention
  • Licensing and Contract Agreements
  • Cybersecurity Issues
  • User Data Privacy and Protection
  • Accessibility Compliance Problems
• Final Thoughts: The Importance of Vigilance in Web Development

Responsible Web Development: Legal Guide to Web & Software Development

Simply put, responsible web development is alert to the ever-shifting regulatory environment, and proactive in implementing strategies that bolster compliance. Let’s take a closer look at some of the key legal considerations for web development professionals.

Intellectual Property Rights

First and foremost, web development professionals should be aware of their own intellectual property rights.

There are a number of forms that web development IP can take. One prominent example is patenting. When web developers create innovative or novel technologies, such as unique algorithms or interface elements, they should know that those innovations can be protected with a robust patent. Meanwhile, for technologies that are already patented, it’s important to check licensing information before implementing them.

Another example of intellectual property concerns in the web development world is the use of trade secrets. Working on behalf of a specific client may bring some knowledge of their own proprietary data or trade secrets, which the web or software developer may be contractually obligated to keep secret and safe.

Practical Steps

As for specific ways to uphold intellectual property rights, there are a few best practices for web developers to keep in mind:

• Ensure that all tools, images, or other elements that you use in your work are properly licensed. Carefully adhere to the licensing terms of any elements you use in your web design branding.

• Clearly document all IP agreements that you enter into with your clients or collaborators.

• Follow non-disclosure agreements (NDA) carefully, especially when working with a client’s trade secrets.

Copyrighting and Trademarks

That’s just the tip of the iceberg for intellectual property concerns within the web development world. Web developers also need to be aware of copywriting and trademarks, a regulatory minefield deserving of its own category here.

Web developers must be aware that both the code they write as well as the content they create (including text, images, and videos) are protected by copyright law. Again, web developers should take pains to safeguard their own work while complying with the licensing agreements of other copyrighted work.

Meanwhile, if a web developer is involved in creating branding elements for a site, such as logos, names, or other brand identifiers, they should be aware of the benefits of trademark use, in addition to copyright registration.

Practical Steps

There are a handful of guidelines for web developers who seek a greater understanding of copyrights and trademarking.

• Be aware that any original code, domain name, design, multimedia, or text you create is automatically protected by copyright laws. Be careful to avoid copyright infringement.

• Avoid using any copyrighted work without acquiring permission.

• When using third-party resources that require attribution,stick to the specified guidelines to ensure proper credit for the creators. This can help avoid copyright disputes.

• Before finalizing a brand name or logo, conduct a trademark search to verify that it doesn’t conflict with any existing trademarks.

Business Structuring and Lawsuit Prevention

When you launch a new web development business, one of the first decisions you’ll make is the kind of legal structure you choose. Even if you’re a freelancer or independent contractor, you have some options for creating a standalone legal entity, such as a Limited Liability Company (LLC). Doing so can be important for many reasons, not least the fact that an LLC allows you to create some distance between personal assets/liabilities and business ones. The upshot of this is, if a disgruntled client or collaborator brings a lawsuit against you, your personal wealth will be well-protected. (Ask any professional is a website development career stressful, and the threat of litigation is sure to feature somewhere in their response.)

Practical Steps

The actual steps for registering an LLC vary by state, but usually go something like this:

• First choose the state where you want to register and look into any local or state regulations that apply, e.g., instructions for how to start an LLC in Texas.

• Hire an individual or an organization to represent your LLC as a Registered Agent.

• Fill out Articles of Organization and file with your Secretary of State, also paying your state’s filing fee. The fee may differ quite a bit depending on geography; for instance, a Chicago web development agency may pay more in fees than an agency in Nashville or in Las Vegas.

• Make an Operating Agreement to help mediate any future disputes with potential business partners.

• Claim an Employer Identification Number from the IRS.

Licensing and Contract Agreements

For web developers, understanding licensing and contract agreements is essential for managing different projects, protecting their own work as well as the work of their clients.

Practical Steps

Here are a few pointers for web developers to keep in mind.

• First and foremost, it’s important to understand the different types of licenses that exist in the web development world. These can include open source, commercial, and proprietary licenses. Each has its own rules and stipulations.

• For open source licenses, web developers may be legally required to release some code of their own, or to offer proper attribution to the authors of the original code.

• When you create proprietary code, you can create a custom license, setting your own guidelines as to how others can use it.

• Again, when using third-party libraries or frameworks, ensure you comply with their licensing terms.

• With respect to contracts, there are several key components to look for. These include scope of work, payment terms, confidentiality, and provisions to guide revisions and changes. Due diligence is crucial when reviewing any web development contract.

Cybersecurity Issues

Naturally, cybersecurity issues loom large in the web development world. Simply put, web developers have a lot of responsibility as they seek to protect their clients from potential data breaches, ransomware, and other cybersecurity violations.

Practical Steps

There are a number of ways to do so. Recommendations from top cybersecurity experts include:

• To prevent unauthorized users from manipulating database queries to gain data access, ensure that all database queries are properly sanitized. Also use prepared statements to avert SQL injection attacks.

• Also be mindful of cross-site scripting, or XSS. These attacks involve malicious scripts, which are injected into web pages viewed by other users. This can potentially lead to data theft or session hijacking. Be sure you implement proper input validation and output encoding to protect against XSS vulnerabilities.

• Cross-site request forgery (CSRF) is another big issue for web developers to be aware of. In these instances, hackers deceive users into performing undesirable actions on a website or application in which they are authenticated, potentially compromising their accounts. Anti-CSRF tokens can go a long way here.

• Finally, remember that you have a responsibility to ensure safe data storage on behalf of your clients and users, which might be as simple as encrypting sensitive data both at rest and in transit.

User Data Privacy and Protection

In recent years, few issues have captured public imagination quite like online privacy. This remains a huge minefield for those who work in web development. Understanding privacy regulations and how they relate to user information is critical for avoiding undue privacy breaches.

Practical Steps

There are several specific strategies that web developers can implement to highlight their commitment to user privacy.

• One major concern is data minimization. Developers should only collect the data that is necessary for the functionality of their site or app. Avoiding excessive data-gathering is an important way to remain legally compliant while maintaining user trust in your web content.

• Another area of focus is user consent. Web developers should implement clear mechanisms for gaining user consent before they collect or process any personal data. Users should always receive notice about the kinds of data being harvested. A website disclaimer can provide information about data usage policies, data protection, and beyond.

• Secure data storage is crucial. Protect all personal data that your site or app collects by using strong encryption. Verify that any data you’re storing is safeguarded against unauthorized access and breaches.

• Another important step is developing privacy policies. Web developers should create and maintain a comprehensive policy that clarifies how user data is collected, used, and stored. Make this website evaluation checklist easily accessible to users, and keep it updated with any changes to your policies.

Accessibility Compliance Problems

A final legal concern for web development professionals is accessibility compliance.

For those outside the industry, it may be surprising to learn that web developers are bound by ADA (Americans with Disabilities Act) requirements, meaning it’s important to ensure that sites and apps are accessible to all users. Web inaccessibility can be a major source of legal friction.

Practical Steps

There are a number of ways in which web developers can ensure their work maintains a high level of accessibility. An ADA website compliance checklist might include:

• First and foremost, be sure all interactive elements, including forms and buttons, are accessible via keyboard navigation. There should never be a requirement for users to operate a computer mouse.

• Screen reader compatibility is a big issue in accessibility compliance. This includes providing meaningful alt text for images and ensuring that the document structure is laid out in a logical fashion.

• Another area of focus is color contrast. Maintain adequate color contrast between your text and your background elements, ensuring readability for users who live with visual impairments.

• Responsive design matters, as well. Design websites to be responsive and adaptable to different devices and screen sizes. Check to ensure your design work is easy to access no matter the browser, too.

Final Thoughts: The Importance of Vigilance in Web Development

When it comes to web development, there are any number of legal hurdles to clear. Doing so requires knowledge and vigilance. There are also legal resources available to those in the web development business, including LLC formation, to ensure an added degree of personal liability protection.

Attending to these legal considerations is essential for anyone looking for longevity in the web development field. Ensure that your understanding of website dos and don’ts encompasses each of these compliance matters.

Author Bio

Amanda E. Clark is a contributing writer to LLC University. She has appeared as a subject matter expert on panels about content and social media marketing. She also writes regularly on topics related to small business ownership.