Facebook just cannot stay out of the news–and it’s a good thing.
Fortunately, it provides me and other lawyers and legal pundits with plenty of juicy topics to discuss, and teaching opportunities for new and seasoned entrepreneurs.
Last year, everyone was saying that Paul Ceglia, the man who claimed to own 84% of Facebook, was crazy. They focused on the fact that he was a convicted felon and had waited years before coming forward with his allegations of Facebook ownership. As a minority voice, I said, don’t get side-tracked by what appears to be silliness, and Ceglia’s criminal record has nothing to do with whether Mark Zuckerberg entered into a valid and enforceable contract with him. In fact, I said the bigger issue is what happens when we sign contracts that we don’t read or understand—they sometimes come back to bite us.
Now it appears with the new lawyers Ceglia has hired (DLA Piper), they seem to think more like me, in that, there may be enough to consider that a valid agreement exists. A new lawsuit has been filed. And even if it is ultimately determined that Mark Zuckerberg owns Facebook free and clear of any encumbrances, it has cost him a fortune to make that determination.
The takeaway for new entrepreneurs, and more seasoned entrepreneurs who think they know, what they don’t know, is to have competent legal representation BEFORE you sign anything and have competent legal representation to draft ALL agreements.
What do you think about this?
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