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Who Owns Your Online Networking Contacts?

Ben Morris writes "A recent judgement in the UK courts has forced a former employee to hand over details of his business contacts built up through LinkedIn.com while he was employed by his former company. The decision is one of the first in the UK to show the tension between businesses encouraging their employees to use social networking websites, and trying to claim that the contacts should remain confidential when they leave."

33 of 130 comments (clear)

  1. Devil is in the details by Anonymous Coward · · Score: 3, Informative

    Hays alleged that the employee used his LinkedIn network to approach clients for his own rival agency, which he set up a few weeks before leaving them.
     

    1. Re:Devil is in the details by oldspewey · · Score: 4, Interesting

      I think the more relevant bit from TFA is this:

      However, the issue here appears to be the contacts themselves and how they were uploaded to the sites - i.e. straight from Mr Ionâ(TM)s work address book.

      So remember kids - the lesson here is to build your network piece by piece and day by day, even if it's tedious.

      --
      If libertarians are so opposed to effective government, why don't they all move to Somalia?
    2. Re:Devil is in the details by InlawBiker · · Score: 3, Insightful

      Indeed, a company's customer list is the property of - surprise - the company. Using LinkedIn as a loophole to aggregate the contacts doesn't make it right.

    3. Re:Devil is in the details by Anonymous Coward · · Score: 3, Informative

      some people might say that a "list" is not the "property" of anyone.

    4. Re:Devil is in the details by ardle · · Score: 3, Insightful

      some might say that a list defines ownership.

    5. Re:Devil is in the details by MacJedi · · Score: 5, Informative

      some people might say that a "list" is not the "property" of anyone.

      Those people would be wrong. Depending on your jurisdiction databases (lists) may be covered by copyright or database rights[1].

      1. http://en.wikipedia.org/wiki/Database_right

      --
      2^5
    6. Re:Devil is in the details by Intron · · Score: 5, Funny

      The curvature is about 0 deg, 0 min, 1 sec per 100 feet, which is flat enough for engineering purposes.

      --
      Intron: the portion of DNA which expresses nothing useful.
    7. Re:Devil is in the details by ArhcAngel · · Score: 5, Funny

      Depending on your jurisdiction databases (lists) may be covered by copyright or database rights[1].

      Databases want to be free!

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
    8. Re:Devil is in the details by PopeRatzo · · Score: 4, Funny

      some might say that a list defines ownership.

      Huh?

      So, here's my list:

      1. Everything of yours.
      2. The lint in my pocket.
      3. All your base.
      4. Profit!

      --
      You are welcome on my lawn.
    9. Re:Devil is in the details by TornCityVenz · · Score: 5, Funny

      Oh great...NASA just chimed in.

      --
      I Need someone to rebuild a Digitech Digital Delay pedal for me....for me...for me...for me.
    10. Re:Devil is in the details by MrMarket · · Score: 4, Insightful

      some people might say that a "list" is not the "property" of anyone.

      These people never spent years and money building and updating their customer lists.

    11. Re:Devil is in the details by Anonymous Coward · · Score: 3, Insightful

      So, what about the contacts that had nothing to do with his work there? That company has no right to those.

    12. Re:Devil is in the details by slarrg · · Score: 4, Funny

      After converting to meters, NASA has confirmed the earth is a torus.

    13. Re:Devil is in the details by LordEd · · Score: 3, Funny

      Databases want to be free!

      Oracle price list (per processor)
      Standard Edition One: $5800
      Standard Edition: $17500
      Enterprise Edition: $47500

  2. what email address did he register? by prgrmr · · Score: 3, Interesting

    If he registered his work e-mail and promoted that as his main contact, then yes, he was using Linkedin in the course of performing his job and his employer is entitled to those contacts. However, I would also expect that whether or not there's confidentiality involved would depend upon if there was an NDA in force when he was hired.

    1. Re:what email address did he register? by grahammm · · Score: 3, Insightful

      It depends on your business; if you're in banking or finance there can be rules about contacting your former clients for a period of time after you switch jobs.

      Whereas in other industries, such as the beauty business, it is normal for clients to follow you when you change jobs.

    2. Re:what email address did he register? by SatanicPuppy · · Score: 3, Informative

      Sadly, the same goes for banking...People get attached to their banker, and since it's such a trust position, they'll follow that guy if he switches, rather than try to "break in" someone new.

      --
      ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
    3. Re:what email address did he register? by Wylfing · · Score: 3, Informative

      I've seen them try and do the same thing to sales people, but it doesn't seem to work as well (in my experience).

      Most States have laws that prohibit contractual obligations that prevent you from working in your field. I mean, you can't very well tell a medical device sales rep that he is forbidden from approaching physicians for 1 year.

      Plus, anyone in sales knows damn well (or ought to know) to keep their own contact list, and not rely exclusively on the company contact database.

      --
      Our intelligent designer has never created an animal that we couldn't improve by strapping a bomb to it.
    4. Re:what email address did he register? by jd · · Score: 3, Informative

      You are correct only insofar as the employee is concerned. Both British and EU law protects all personally identifying information on behalf of the person identified, NOT the holder of that information, which means that the employee has no legal right to forward that information to anyone, even if that information is obtained in the course of his work duties. The information doesn't belong to him, it belongs to the people it is about.

      (That is what makes the EU - in principle - far superior to other regions when it comes to privacy. You own all data about you, no matter who has it. You do not rescind ownership, simply by handing it to someone. They are merely licensed to hold that information. You are entitled to demand that they reveal what information they have, and are entitled to demand mistakes are corrected or that the information is destroyed.)

      If the employee has no legal ownership of the information, the court cannot order him to forward it. Courts can't order people to commit offenses! That would be absurd. And since he is merely the licensee of that information, not its owner, the court had no business regarding him as a concerned party.

      I want to see privacy laws increased in Europe - there isn't nearly enough, which is why Britain has so many CCTV systems, mostly used for the purpose of selling footage to the media - they are barely ever used in criminal cases and aren't even that usable when they are. Further, only computer-stored data is protected, which is stupid - privacy breeches are about the privacy not the method.

      --
      It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
    5. Re:what email address did he register? by compro01 · · Score: 3, Insightful

      Not just trust, but also a "knows what I need/want" thing. It generally happens with any sort of personalized service. Bankers, brokers, investment consultants (a lot of times those three hats are worn by one person), doctors, lawyers, funeral planners, etc. All of them rely heavily on repeat clients and word-of-mouth advertising, which in turn rely heavily on providing just-what-I-needed service.

      --
      upon the advice of my lawyer, i have no sig at this time
    6. Re:what email address did he register? by compro01 · · Score: 3, Insightful

      Not sure if you're completely joking or not, but the customers are not the deceased, but the family of the deceased, which typically do bring opportunities for repeat business, as everyone, including vampires and zombies, dies eventually, and if they were satisfied with the services the first time, it's likely they'll return.

      --
      upon the advice of my lawyer, i have no sig at this time
  3. Riight by SatanicPuppy · · Score: 3, Interesting

    If you make contacts, you keep 'em unless it's something profoundly related to your company (e.g. the guy in shared services who'll push your capital requests).

    Otherwise those are your contacts. You bet your ass the sales guys turn around and pitch your customers in their next gig. Why should it be any different for IT?

    --
    ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  4. This happened to the guy I replaced by lantastik · · Score: 4, Insightful

    Apparently some other members of the company had been contacted by recruiters and they started going through email and found some emails in violation of the non-compete clause. They then solidified their case through the former employee's LinkedIn contacts. The guy ended up settling out of court and they drilled him financially.

    After finding that out, I went through my LinkedIn contacts and removed ALL the recruiters on there I didn't know on a personal level. I then contacted the recruiters remaining on my list and asked them to contact me before sending any InMail to any of my LinkedIn contacts.

  5. It will be interesting when its Stateside by pillageplunder · · Score: 4, Interesting

    After RTFA, it appears as if the bloke in question set up his linkdin several weeks prior to him leaving. Of a more interesting nature, in my mind, is, at what point does an employer here in the States 'own' your contacts? Think about it. You've been on a site like the one mentioned in the article for lets say 5 years. You accept a position at a new company. Over the course of your 2 years being employed there, you add lets say 5 contacts. You then accept another position at another company, perhaps because you received a better job offer through this service. Can the comapny you are now leaving sue you in the US and obtain all of your contacts, even those prior to when you joined?
    Another question is, are you now in the position of having to list out any and all personal and professional contacts you have on various internet sites as a part of your disclosure when filling out your paperwork for a new company? Sort of like having to list patents, websites and other works you might already have prior to working somehwere?
    Time will tell I guess. this case seems pretty straightforward based on the limited article...but it sure will muddy up quick.

    --
    "Work is the curse of the drinking class" Oscar Wilde
  6. Who owns your contacts? by Opportunist · · Score: 4, Insightful

    Is a tricky question.

    The real question is, though, how does it impact on your and your former employer's life? A contact isn't some sort of IP. There's a person or a company on the other end of the address, phone number or mail address. How will they react to a company that browbeats you into handing over your, partly private, address book?

    If anything I'd send a mail to my contacts and tell them in no uncertain terms what my former employer did. Would you want to do business with a company where you have to watch constantly for backstabbing? I don't know if I'd really enjoy that.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:Who owns your contacts? by SatanicPuppy · · Score: 4, Interesting

      Just another example of social networking privacy issues. If your contact list was on your crackberry, you could give 'em the finger, secure in the knowledge that they'd never get hold of it.

      But if it's right out there on LinkedIn...Well shit. What do you do? Especially if some of the contacts you've made are more buddy-buddy than pure contact...Or hell, what about all the contacts you make in school? I know dozens of people working for tech companies all over.

      I know a manager in a corp that is competing directly with the corp I work for. We even BS industry specific crap back and forth; nothing truly private, but you know how the auditors get...But I knew this guy before either of us started working our current gigs. It would be easy to argue it as related or suggestive, but in reality it's just co-incidental.

      --
      ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
    2. Re:Who owns your contacts? by FnH · · Score: 3, Insightful

      The intent the information was shared with plays a role here I imagine. If the intent for the contact was to keep in touch with the company, then the information can be transferred. If the intent was to keep in touch at a more personal level, then it can't. Chances are that at least some of the contacts were personal, and that this ruling should have been more nuanced.

  7. In Europe... by John+Hasler · · Score: 4, Funny

    ...where they have decent employment and privacy laws this would never be allowed.

    Oh. Wait...

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  8. Of course they'll want them by MikeRT · · Score: 3, Interesting

    Contacts can sometimes be worth an incredible amount of money. This is absolutely true when you're talking about a business that relies on doing contract work.

  9. Good luck with that by BlueZombie · · Score: 5, Interesting

    To all you worker drones out there:

    • Always read what you sign.
    • Respect it to the letter
    • Whether you respect it beyond the letter, is up to you

    To all you bosses out there:

    • You can maybe force me to turn over an address book
    • But you cannot force me to turn over years of personal relationships I've carefully built
    • So treat me good while you have me
    • Or you'll miss me when I'm gone
  10. Could be some NDA/NCA issues there . . . by mmell · · Score: 3, Interesting
    Divulging what your (former) employer has done could well be considered a violation of most standard Non-disclosure agreements (telling how your previous employer gets their contact data).

    Contacting said contacts to give them what might be construed as negative information about your prior employer could indeed convince them to do business elsewhere, raising the spectre of competitive activity (even if you don't profit directly). If company xyz is able to take your former employer's contacts because you published their dirty laundry, you could end up liable even if xyz never compensates you for their good fortune. In a civil court, it would place you in the position of proving that xyz didn't compensate you for your actions, an incredibly difficult proposition (remember: in civil court, the standard is a preponderance of evidence, not proof beyond a reasonable doubt).

  11. pretty crazy by jollyreaper · · Score: 3, Interesting

    It really all boils down to what you can get away with. As was mentioned previously, hair stylists will tend to take their customers with them when they go to a new salon. This is also common when talking about stock brokers and investment advisers, "taking their book with them." Very competent car salesmen will also walk with their clients. I would have no compunction switching vendors when a salesman changes jobs if the business is such that I know he has a very strong influence in the quality of service I receive.

    At the same time, business owners tend to think of these customers as "theirs" and use any number of anti-competitive ruses to crush their employees. I worked at a midrange shop where the boss hosed one of his sales reps on a deal: he gave the guy a figure to offer for a deal and the rep had no latitude to change the offer, it being the boss' money and all. When the customer hemmed and hawed over it, the boss called them back and offered a better price, then put the sale on his board, not the other rep's! The rep walked, naturally, and a better case of killing a goose that laid golden eggs could not be found. The guy tried taking his book with him and the boss pulled out the non-compete signed many moons ago. They wasted a lot of money in court and the judge eventually decided against him.

    A very common and legal scam in service-related industries is the lawn service con. When someone buys a lawn service, they're not buying the equipment so much as the customer base. The equipment costs are negligible compared to the effort of gathering all those customers in the first place. Ah, but what does the wily lawnmower man do? After he sells his business, he contacts all of his customers and lets them know he's going to be doing business as a different name. Those customers, happy with his service, will switch companies and the new owner of the old company will find himself with no work. Anyone buying a service business like this must must must stipulate a non-compete in the contract.

    There's no right or wrong in this kind of dispute, there's only what you can get away with and what you can be nailed with in court.

    --
    Kwisatz Haderach
    Sell the spice to CHOAM
    This Mahdi took Shaddam's Throne
  12. Just send a copy. by SeaFox · · Score: 3, Insightful

    How exactly does one "hand over" an electronic record that can be freely copied?

    What are they going to do, tell all his contacts to no longer talk to him if he calls?