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Global Defense One Net side effect: worldwide legal worries

By Steven C. Bahls

Opinions expressed by Entrepreneur contributors are their own.

It's bad enough when your business gets sued in your owncounty and you have to waste days in depositions and hearings--andthousands of dollars in legal defense. But imagine how the time andexpense would multiply if a lawsuit were brought on the other sideof the country. Between unfamiliar laws, unfamiliar lawyers and thecost of traveling, one such lawsuit could put quite a strain onyour budget. And what if you had several going at once?

If you're advertising your products and services on your Website--and especially if people can order them directly through yourinteractive features--you're doing business in all 50 statesand all over the world. That means if something goes wrong, you maybe subject to lawsuits brought in any jurisdiction.

What could go wrong? Think of the possibilities. Supposeyou're selling software that can be downloaded directly fromyour Web site, and there's a glitch in it that erases harddrives all over the country. Or a small-business customer uses yoursoftware product to store company records, then it malfunctions andthe customer can't track inventory or bill clients, driving thecompany out of business. Or suppose there's a trademark disputewith a company 1,000 miles away that didn't even know aboutyour business until you put up your Web site. Or maybe you'reoffering a product that's regulated by state law, and yourCalifornia company gets in trouble for violating the laws of Maine,where you didn't even know you were doing business.