Mitigating Social Media Copyright Risks in Influencer Marketing

Mitigating Social Media Copyright Risks in Influencer Marketing

Businesses relying on social media for promotion face increasing copyright infringement claims, necessitating a grasp of copyright law’s intersection with social platforms, according to an article in Risk Management Magazine. Previously more common among publishers, these claims now extend to major companies and influencers. Re-sharing user-generated content without permission exposes organizations to legal liabilities. A comprehensive social media copyright risk management plan and insurance can mitigate losses from such claims.

Various activities on social media pose risks of copyright infringement. Using content like photos or videos without approval from creators can lead to liability. Even innocently using unlicensed music in the background can be problematic. Notably, low follower counts or crediting creators don’t shield against infringement claims. Advances in detection software contribute to the rise in claims.

Infringement claims can incur significant costs, including legal fees and damages. For instance, Twitter faced a $250 million lawsuit for copyright infringement. Damages for infringement can be substantial, especially with the popularity of short-form videos using copyrighted music.

Companies employing influencer marketing must be cautious, as using music without a license has led to lawsuits. Strategies to mitigate risks include comprehensive insurance coverage, clear social media governance policies, and using original content. Insurance can cover defense costs and settlements, but policies vary, requiring careful review.

Typically, commercial general liability policies don’t cover intellectual property risks, necessitating media liability insurance. Cyber insurance might also include coverage for copyright infringement claims. However, exclusions and policy language nuances can complicate coverage.

As social media and influencer marketing grow, businesses must proactively manage copyright infringement risks and ensure adequate insurance coverage. Consulting with insurance professionals is crucial to navigating policy complexities and protecting against potential exposure to copyright claims.