Addressing legal issues with the latest technological developments and social media trends.
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In a series of important rulings, the National Labor Relations Board (“NLRB”) has provided guidance regarding the extent to which private employers may regulate aspects of an employee’s social media activities consistent with the National Labor Relations Act (“NLRA”).  The NLRA protects employees’ rights to engage in “concerted activity” for the purpose of collective bargaining, or for other mutual aid or protection, and prohibits employers from interfering with, restraining, or coercing employees who are exercising rights guaranteed under the NLRA. In light of this recent guidance, in addition to recent judicial and legislative developments, it is imperative to have social media policies that clearly define what employees can and cannot do when using social media for both professional and personal purposes. But as the NLRB rulings make clear, a company’s policy must also respect certain employee rights or it may be deemed at least partially unenforceable.

NLRB Rulings

In their first two rulings, the NLRB found that the two at-issue social media policies contained overly broad language regarding the type of social media activity that was regulated by the employer and failed to carve out an exclusion for communications protected under the National Labor Relations Act (“NLRA”).  One policy, in relevant part, stated that employees should be aware that statements posted electronically (such as to online message boards or discussion groups) that damage the company, defame any individual or damage any person’s reputation or violate the policies outlines in company’s employee agreement, may be subject to discipline, up to and including termination of employment. Because the policies could reasonably be construed to prohibit activity protected under Section 7 of the NRLA (e.g., concerted communications) and “would reasonably tend to chill employees” in the exercise of their rights to engage in “concerted activity” as set forth in Section 7 of the NLRA., the policies were deemed unlawful.

In a separate ruling, the NLRB opined that an employee may be terminated for activity that is regulated by an employer’s lawful social media policy, including posting an entry on the employee’s Facebook page.  The at issue Facebook post was not part of any communication with another employee, and it did not have a connection to any of the employee’s terms and conditions of employment.  As such, the NLRB found that the post did not fall under the umbrella of protected activity set forth in the NLRA. 

Recommendations Regarding a Corporate Social Media Policy

The recent NLRB rulings, in addition to recent judicial and legislative developments, highlight the need for companies to utilize social media policies with clear, narrowly tailored language to demarcate the boundary between acceptable and unacceptable use of social media forums.  When constructing a social media policy, it is also important to balance numerous factors including, for example, protecting concerted employee activity under the NLRA, applying anti-violence, harassment and discrimination policies, protecting company confidential information, and avoiding undue responsibility for an employee’s own statements.    

Employers are encouraged to explicitly set forth exceptions in their social media policies for activities protected under the NLRA.  These exceptions may be included directly in a social media policy or in another employee communication in which the policy is included or incorporated by reference (e.g., an employee handbook). 

Further, prohibiting an overly broad range of activities in a social media policy may raise red flags with the NLRB.  Examples of such broad activity include “talking badly” about an employer, posting information that “damages” or “disparages” the employer, disclosing “inappropriate” information about an employer, etc.  It is currently unclear if an explicit exception for protected activity may allow for broader employer regulation of social media activity.  Even when including an explicit exception for protected activity, employers should still aim to avoid such broad language and provide examples in their policies to give context to what kinds of social media activity fall under a company social media policy.  

Employers are also encouraged to apply anti-violence, harassment, and discrimination policies to social media activity via their social media policies.  A thorough social media policy should include confidentiality and proprietary information restrictions as well.  Further, social media policies should require employees to state that their opinions are their own (and not the opinions of their employers) when disclosing their professional identity via social media participation. As mentioned above, these employee regulations may be included directly in a social media policy or in another employee communication in which the policy is included (e.g., an employee handbook).

For a more detailed discussion of the NLRB rulings and best practices, please see our client alert entitled First NLRB Decisions on Social Media Give Employers Cause to Update Policies, Practices posted October 10, 2012. For additional information on recent judicial and legislative developments, please see our client alert entitled Drawing the Line Online: Employers’ Rights to Employees’ Social Media Accounts posted October 16, 2012.

The legal requirements related to employer regulation of employee social media activity are continually changing.  For help drafting a social media policy contact a knowledgeable attorney.

 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Video game tax break makes Quebec an industry hub
Sixteen years after Quebec’s government made a conscious decision to make the province a hub for multimedia firms and put up the money to stoke their growth, the effort has spawned a thriving industry of about 50 companies publishing video games and 30 others making the tools that support them. Total employment in the sector tops 8,000 workers.

Zynga Claims Ex-Staff Member Took Trade Secrets to Rival
Online game developer Zynga Inc. on Friday went after a former manager in California court, accusing its onetime employee of breaching a contract by defecting to a competitor with valuable trade secrets concerning Zynga’s product line and business strategies.

Beyonce’s Deadline Claim Attacked in Video Game Suit
Pop singer Beyonce can’t disavow a multimillion-dollar video game development contract because she kept negotiating long past the cutoff deadline she cited as her reason for pulling out of the deal, the developer’s attorney told a New York state appeals court Wednesday.

NJ Moves Ahead With Sports Betting Law Despite Legal Battle
Forging ahead with legalized sports betting despite a lawsuit brought by professional sports leagues and the NCAA, New Jersey said Monday that it would begin accepting applications from racetracks and Atlantic City casinos to offer such gambling.

Zynga revs up mobile ads with Honda campaign
The “It Starts With You” advertising promo will offer in-game rewards to Words With Friends and Scramble With Friends players.

Investors Steering Dollars Away From Social Games Ever Since Zynga’s IPO
Zynga’s public offering 10 months ago marks the peak for social gaming investments, with venture capital moving sharply away from the sector ever since.

Fashion Industry Puts On Its Game Face
As fashion houses are presented with the ever-challenging goal of achieving and maintaining brand recognition, many are now attempting to engage consumers in both the real and virtual worlds. Gaming represents one nontraditional avenue that has undergone recent growth, as brands find value in connecting with existing and potential consumers through interactive online means.

 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

Will Asian online game publishers Nexon and NCSoft buy blockbuster publisher Valve?
Nexon and NCsoft, two major Asian online game companies, are reportedly in talks with U.S. gamemaker Valve to buy the company for more than $893 million, according to a major Korean publication.

Social Gaming to Reflect Real Money Gambling
A Newzoo trend report published in February 2012 that investigated casual social games certainly threw up some interesting results. Of the most significant figures to those trying to turn a profit through social games was the percentage of casual game players that were payers – in other words, users who were prepared to part with their hard-earned cash.

Zugara’s virtual dressing rooms take the X factor out of online shopping
Zugara was granted a patent today for its augmented reality technology that creates virtual dressing rooms for online consumers. The Webcam Social Shopper seeks to alleviate the element of the unknown from online shopping by enabling consumers to virtually try on clothes.

Smartphone apps become ‘surrogate therapists’
In the age when there’s an app for everything, it’s no surprise that there are a lot of smartphone tools out there claiming to help people cope. From informational resources to interactive mental wellness programs, there’s plenty out there to choose from.

Facebook gift-giving moves from virtual to actual goodies
It’s only September, but Facebook is already getting into the gift-giving spirit with a new feature that lets you send physical items such as cupcakes, gift cards, stuffed animals, and magazine subscriptions to your Facebook friends. The new feature, dubbed Facebook Gifts, recently started rolling out to profiles and is available only in the U.S. for now.

 

 

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Binary world A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

 

Child’s Play: Food Makers Hook Kids on Mobile Games
U.S. food companies are reaching children by embedding their products in simple and enticing games for touch-screen phones and tablets. The new medium is far cheaper than Saturday morning TV commercials and could prove as effective.

Facebook updating its mobile apps every 1-2 months from now on
In an engineering blog post, Facebooker Christian Legnitto, who’s responsible for pushing out mobile code for the company, says that Facebookers working on mobile have been taking the same doubled-down approach to release cycles that the rest of Facebook’s engineers use for the website code pushes.

NASA, Angry Birds and the Question of Gamification
The addicting power of games, and their proliferation into each of our pockets, has created a new opportunity for organizations with a message. Each year, companies pay millions for product placements in videogames. Now, the public sector is finding creative ways to get in on the act too. 

Online push transforms Japan gaming
This year Gree, which was founded by Asia’s youngest self-made billionaire, Yoshikazu Tanaka, 35, is continuing its march on video games veterans such as Sony and Sega. But now its target is not their floor space but their core demographic of hardcore game players.

Social Media Week Chicago to Present 90 Free Events
Social Media Week Chicago 2012 will host a lineup of 90 free events across 40 venues throughout the city that explore the social, cultural and economic impact of social media from Sept. 24 — 28. The event is organized by Zocalo Group and the Chicago Tribune.

3 more companies approved for online poker
Nevada gambling regulators have approved licenses for three companies to run Internet poker sites in the state.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Zynga loses more execs, gains lottery partnership with Scientific Games
Social game developer and online poker hopeful Zynga made waves last month with its hiring of former 888.com exec Maytal Ginzburg, but more top execs continue to flee Zynga’s floundering ship.

Social casino game market worth $1.6bn, doubled since 2010
Yesterday, analyst firm SuperData released a report stating that the worldwide social casino game market will be worth $1.6bn in 2012, and projects it to grow to $2.4bn by 2015. This shows that not only is there a sizable market for casino games in the social space, but that it should continue to grow rapidly as more players look online to play casino-style games.

Proposed US online poker legislation revealed
In the United States, a summary of The Internet Gambling Prohibition, Poker Consumer Protection and Strengthening UIGEA Act of 2012 legislation has been released outlining what future federal online gaming regulation could look like.

NYPD Releases Guidelines for Social Media Use in Investigations: Report
The NYPD has released a memo that lays out rules for using social media during investigations, but critics say the new guidelines raise questions about privacy issues, according to a report.

Friendster Founder Jonathan Abrams Launches Nuzzel: A Fast, Simple, Social News Reader
Jonathan Abrams, whose resume as a founder or co-founder includes the Founders Den startup workspace, event service Socializr, social bookmarking service HotLinks, and Friendster  is launching his latest startup today: Nuzzel, a site for browsing the news that your friends have shared on social networks.

Game on: new technology just the ticket
The internet is changing everything, including the wait in line to buy tickets.

 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Police Embrace Social Media as Crime-Fighting Tool
We leave small clues about our lives all over the internet like fingerprints.

LinkedIn’s Profit Growth Leaves Social Media Peers Trailing Behind
The past two days have been exciting for social media investors. On Wednesday, Yelp roared 22% higher, befuddling shorts expecting the expiration of its lock up would send shares lower. And, on Thursday, music purveyor Pandora jumped 14% following its earnings release.

Party conventions get social, with major social media ramp-up
Democrats and Republicans, for all their differences, are joining in the same revolution this political season.

Badgeville and Acquia Partner to Deliver First Gamification Platform Capability for Thousands of Drupal Communities
Badgeville provides first gamification platform solution to be layered on top of Drupal, driving better user engagement and a stronger community.

Internet Poker: Federal standards would benefit Nevada
Michael Gaughan’s South Point Poker made history last week, becoming the first U.S. casino to be licensed to operate in an in-state, real-money poker website.

Wolfram Alpha Launches Personal Analytics Reports For Facebook
Wolfram Alpha, the “computational knowledge engine” that quietly handles a large number of queries from Apple’s Siri, launched a new feature today that allows you to quickly get an overview of all your data on Facebook. The new report, says Wolfram CEO Stephen Wolfram, expands Wolfram Alpha’s “powers of analysis to give you all sorts of personal analytics.” The company plans to expand these reports with new features over time, but they already give you a pretty deep look at your Facebook habits.

Plank in GOP platform urges ‘prohibition’ of Web gaming
A plank in the Republican platform, approved earlier this week at the party’s national convention in Tampa, Fla., calls for a “prohibition” on Internet gaming and reversing December’s re-evaluation of the Federal Wire Act.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

 

Bait and Switch? @TextInstagram Transfers Followers to Personal Account
The creator of viral parody Twitter handle @TextInstagram is in hot water after he transformed the account into a personal account, @JoshHelfferich. 

Twitter Tweaks Developers With Tough Rules
Twitter introduced new rules for developers who create applications that rely on Twitter data, provoking disappointment and condemnation among those who write code.

OnLive assets sold to new company, service will continue
Cloud gaming pioneer OnLive has confirmed that its assets have been sold to a newly-formed company with “substantial backing.” OnLive will continue to operate its gaming and desktop streaming services and supports its current partnerships, the company said in a statement.

California Social Media Privacy Bill Would Put New Restrictions On Employers
Employers are tricky: many increasingly require applicants to turn over their social media passwords so they can take a look at interviewees’ profiles. Earlier this week, the state of California took moves to outlaw this practice when the state senate unanimously voted for a bill banning employers from demanding access to the social media profiles of both job applicants and current employees as well as barring retaliation if such requests are denied.

Kixeye Poaches CityVille GM Patmore From Zynga to be VP of Product
Zynga’s tanking stock price is everyone else’s gain. Kixeye, the iconoclastic, midcore Facebook gaming company, just hired away the general manager of CityVille, Alan Patmore, to be its vice president of product. It’s a score for the company at a time when the entire social gaming industry is in flux.

Applifier’s Everyplay, Which Lets Mobile Gamers Share Glory, Attracts Interest From 100 Developers
Applifier, a Helsinki and San Francisco-based mobile-social gaming network, added a lot more richness to its user experience this week with Everyplay, a way for gamers to share and replay their greatest moments. Everyplay lets gamers share their favorite titles by recording and replaying sessions of games — like a time they might have gotten a high score.

 

 

 

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This week, a federal judge ruled that poker is more a game of skill than chance. The decision is a victory for poker advocates who are pushing to legalize internet poker in the U.S. The judge relied extensively on the findings of a defense expert who analyzed online poker games.

The ruling overturned the July conviction of a man charged with conspiring to operate an illegal underground poker club, a business featuring Texas Hold’em games. “Because the poker played on the defendant’s premises is not predominately a game of chance, it is not gambling” as defined in the federal law, the judge wrote in a lengthy decision that traced the history of poker and federal laws to combat illegal gambling.

To help our client understand some of these and other complex legal issues relating to gambling and social games, Pillsbury’s Social Media, Entertainment & Technology Team recently finalized a white paper on legal issues with Gamblification. To request a copy, please click here.

 

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Binary worldA weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Amazon Enters Social Gaming Market
Amazon is entering the social gaming market just as two companies that pioneered the space, Facebook and Zynga, are struggling to figure out better ways to make money.

Gaming Industry Haunted by Safety Concerns
It’s never been a better time to be a game developer. It’s also never been more complicated. When building games, founders must keep young players safe – and stay within the law.

Zynga Builds Lobbying Presence on Gambling
Zynga Inc. has begun investigating in state and federal lobbying efforts around gambling with real money, even as the social gaming firm predicts the U.S. will not be an initial market for the potentially lucrative new line of business.

$1 Million Each Year for All, as Long as Tribe’s Luck Holds
The financial success of the 480 members of the Shakopee Tribe – whose ancestors 150 years ago were hunted down, slaughtered, and eventually exiled from Minnesota – derives from their flourishing casino and resort operation, which on weekends swells the population of their tiny reservation to the size of a city.

Online Gambling: What’s the rush?
Internet betting may be the future, but that doesn’t mean Maryland legislators should rush into legalizing it.

Bingo! Facebook Gambles On Games Using Real Money, Not Credits, To Engage Users
For the last three quarters, Facebook has been struggling to move the needle on its payments business, but today a new game has launched that could provide a clue to how that could change that in the future: the social network has, for the first time, allowed a gaming app on its platform that allows users to play with real money — not Facebook Credits. Called Bingo & Slots Friendzy, the app is an extension of the Jackpotjoy.com franchise from Gamesys, and will be available in the UK only, and only to users over the age of 18.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

 

Will States’ Fight Against Sports Betting Ban Pay Off?
Two states, New Jersey and California, are competing in a growing-stakes battle of states’ rights. The issue is the two-decade-old federal ban on sports betting. It has taken nearly 20 years, but finally there is some hope that things are about to change.

First real-money gambling app arrives on Facebook
Facebook has entered the world of online gambling after the first real-money bingo and slots app was launched on the site today. The Jackpotjoy Bingo and Slots Friendzy app has been created by developer Gamesys and is open to players in the UK over the age of 18.

NCAA To Hand Over Classified Docs In Player Antitrust Suit
A California federal judge on Monday ordered the National Collegiate Athletic Association to produce its media and licensing revenue reports in multidistrict litigation that alleged the organization and Electronic Arts Inc. violated antitrust laws by profiting from player likenesses.

The rise of the corporate app store
Businesses are taking to apps with their own stores.

Amazon Takes Aim at Zynga With Social Gaming Salvo
Amazon is joining Zynga in the social-gaming business, and just like the battered Internet game pioneer, it’s turning to Facebook to play host to its first entry.

Facebook Ventures into Online Gambling
Facebook is venturing into the world of online gambling with the launch of its first application where punters can stake real money.

NCAA, Pro Leagues Sue NJ Officials To Block Sports Betting
Professional and collegiate sports organizations including the National Football League and the NCAA sued New Jersey officials in federal court on Tuesday to block the state from allowing sports wagering at its casinos and racetracks.