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Comment on Ask HN: how do you deal with legal stuff when you are bootstraping?

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Unless you have a legal issue unique to your startup, you can always get general legal advice from mentors and advisors and the HN community - someone just asked about terms of service, for example. You're probably too small for anyone to care to sue you.

But if you're raising money, having contracts signed, you really should work with a lawyer. Asking other startups in your area who they used is a good first step - you want to find a lawyer who specializes in working with early-stage companies, who can avoid some of the legal traps, many of which deal with tax issues associated with stock options and entity conversion. My personal opinion is that there's no good substitute for a good lawyer - using forms from LegalZoom just seems like a really bad idea.

I would also suggest getting a lawyer if your startup business model depends on a fine-tuned understanding of the law. For example, just the other day, a startup that was copying the structure and pagination of textbooks was sued by Pearson and other major textbook publishers. They're venture-backed, which probably means they consulted lawyers and understood the legal risks beforehand. Before spending tons of resources, I think you might want to know whether or not what you're doing is illegal, and whether you are prepared to deal with the legal risks.

Disclaimer: These statements are merely my personal opinions and do not constitute legal advice.

Thank you for your opinion. No, I don't have legal issue, yet, with my startup, but I am within weeks to go beta launch and curious about term of use, privacy statement. I notice each startup has these on their products (whether it's website, mobile app, custom program, etc), but I wonder how do they get it. Do they have someone draft for them? Or is it a generic statement they can just use temporarily? I am bootstrapping now.

Of course, if my startup gains traction and grows, yes, I will definitely consult lawyer, but since it's still in its infancy, I wonder if it's really necessary to get lawyers just for term of service, privacy, NDA statement.

Thank you.

For terms of use, another post mentioned modifying Wordpress's terms, which are under a Creative Commons license. For privacy policies, this area could be a little bit trickier if you have an open beta - if any of your users get pissed off that you did something with their data, and your privacy policy isn't up to snuff, you might be in for a world of hurt. With a closed beta or if you're not dealing with extremely sensitive information, I wouldn't worry as much.

Like I said before, a good startup lawyer in your local area is worth their weight in gold. For the basics, you can probably find a dozen lawyers who have worked in big firms who are working for themselves now advising startups like you, without having to spend what little cash you have. Some coworking spaces have lawyers too - and they're usually happy to help and often have structured office hours.

Legal terms cannot be copyrighted, so feel free to take a look around and cut and paste from some sites you like. Most of the terms can be figured out pretty easily, its the ones you leave out because you're not a lawyer that will come back to bite you :)

That being said, it doesn't matter much if you're not raising money, like others have said. Your chances of ever needing them are very low, they're mostly for show and do more to make you look like a real company than they do to protect you. Its like insurance, what start up buys insurance? Your chances of being sued are so low, it barely registers. Just copy the terms of a site that's like yours and go with it.

Once you raise money, change your tune and hire a good lawyer. Money needs to be protected :)

Thank you. I was thinking of copy and paste from some sites that I have seen so far. But Mz post said otherwise. This is exactly my concern. Mz post states that his disclaimer is used by legal permission. Now to me, this seems to contradict what tstegart and me believe. If legal terms can not be copyrighted, then why would Mz require someone consent, the author in this case, to use the disclaimer? I want to avoid this situation if lets say I use facebook or google term of use word by word and then they sue me?

so now i m confused...

i understand that my project is nothing, and the chance of getting sued is almost 0 because i have no traction, but if it's legally not right, then i want to avoid the risk.

thank you for the advise.

I don't think tsegart is quite right on this one. Anytime you "express" words on a page, those words are copyrighted. Expressions are distinguished from more functional/factual considerations like labels, page numbers, math equations, etc.. So, my guess is that terms of service would likely be considered a copyrightable expression, just like software code, novels, and company manuals, because they are a manifestation of a lawyer's expression.

Assuming you copied Google or Facebook's terms of service without their permission, you would be in technical violation of their copyright. What they would sue for is less clear - unlike copying music, a textbook, or someone else's code, you're not really harming Google or Facebook's revenue through your copying like you would if you copied a competitor's design. In the extremely rare .00001% chance that Google's legal team decided to sue you, you're probably looking at a court-ordered takedown notice.

However, this discussion is largely academic. No one is probably going to sue you when you're bootstrapping and you can hire a real lawyer to change your ToS later. There's a good discussion of this on metafilter:

http://ask.metafilter.com/74055/Can-one-copyright-a-legal-ag...

Disclaimer: This is not legal advice, just my personal opinion. If you want to rely on someone's advice, hire a lawyer.

To clarify: I said a specific individual advocated I cover my ass and encouraged me to use his disclaimer as a starting point. That doesn't contradict what other people here are saying. I have no idea if you need permission to adapt something like that. I am not a lawyer. I was only telling a personal anecdote as to where I got some of my legal language.

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