As Blogging Grows, Companies Eye Legal Pitfalls

As Corporate America wades into the burgeoning world of Internet Weblogs, companies are being warned they could face legal hazards when employees are let loose in the free-wheeling blogosphere.

Blogs, online journals that are proliferating on the Web, are attracting attention from big businesses looking for new ways to connect with customers. Sun Microsystems Inc., Microsoft Corp. and General Motors Corp all have officially sanctioned corporate blogs for employees to write about products and strategy.

But lawyers see possible legal pitfalls for companies looking to join the blogging phenomenon. What, for instance, would happen if someone at a publicly traded company unwittingly divulged confidential financial information or a trademark secret on one of these Web diaries?

There already have been cases of people being fired for writing about life inside their companies on blogs not affiliated with their employers. Experts say the real test will come when courts must consider the legal ramifications of what employees say on corporate blogs.

“There’s very, very little case law at this point,” said Paul Arne, co-chairman of the technology group at law firm Morris Manning & Martin LLP. He recently conducted a telephone seminar for other corporate lawyers to discuss blogging.

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