Social media sites are transforming not only the daily lives of consumers, but also how companies interact with consumers. Here at Morrison Foerster, across all of our practice groups, we are seeing complex, cutting-edge legal issues arising out of social media. As with the Internet boom during the mid-to-late 1990s, social media is generating new legal questions at a far faster pace than the law’s ability to provide answers to such questions. In an effort to stay on top of these emerging issues, and to keep our clients and friends informed of new developments, Morrison Foerster publishes this blog devoted to the law and business of social media.<h2>ABOUT MORRISON FOERSTER</h2>Morrison Foerster is a leading global law firm that transforms complexity into advantage for its clients. Our clients include some of the largest financial institutions, banks, consulting and accounting firms, and Fortune 100, technology, and life sciences companies. Highlighting the firm’s commitment to client service, leadership in market-changing deals and impact litigation, and values-based culture, Morrison Foerster has been repeatedly recognized as one of the top 10 firms on The American Lawyer’s A-List. Year after year, the firm receives significant recognition from Chambers and The Legal 500 across their various guides, including Global, USA, Asia‑Pacific, Europe, UK, Latin America, and FinTech Legal. Our lawyers passionately care about delivering legal excellence while living our values. Morrison Foerster has a long-standing commitment to creating a culture that respects and celebrates differences, while providing an inclusive environment. The firm has achieved Mansfield Certification Plus since 2018 as a result of successfully reaching at least 30 percent women, communities of color, and LGBTQ+ lawyer representation in a notable number of current leadership roles and committees. The firm also has a long history of commitment to the community and society through providing pro bono legal services, including litigating for civil rights and civil liberties, improving public education and fostering the wellbeing of children, advocating for veterans, promoting international human rights, enforcing the right to asylum, and safeguarding the environment.

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Aaron is the chair of the firm’s Technology Transactions Group and co-chair of the Interactive + Digital Media Group. He advises clients on a wide range of complex transactions involving intellectual property and technology, including structuring and negotiating strategic licensing, development, collaboration, procurement, and distribution deals.Aaron’s practice focuses on advising both established and emerging companies in a variety of data- and technology-intensive sectors, including software, SaaS, cloud-based technology, digital media (social media, AR/VR, gaming, streaming media, AdTech), AI, healthcare, consumer electronics, e-commerce, other online business models, and mobile applications. He also maintains an active practice counseling companies on branding and marketing, trademark licensing, and content-related transactions, as well as the intellectual property aspects of mergers, acquisitions, asset spin-offs, and private equity investments.He has represented clients such as Autodesk, Meta, OpenAI, Splunk, Konami, Kaiser Permanente, SoftBank, Visa, and Yahoo, among others.Aaron has been recognized by numerous publications for his work on market-defining technology transactions. He is currently ranked by Chambers USA for “Technology Transactions.”Aaron also serves as co-editor of Socially Aware, the firm’s award-winning newsletter and blog devoted to the law and business of social media, and regularly publishes on various IP and technology-related topics. Aaron is also a sought-after speaker on new and emerging areas of law, and is a frequent presenter and panelist at conferences and legal services programs. In addition to his active practice, Aaron regularly provides pro bono assistance to various nonprofit and charitable organizations such as Common Sense Media and the Starlight Children’s Foundation. He is a member of the board of directors of California Lawyers for the Arts.While in law school at the University of California, Berkeley, Boalt Hall School of Law, Aaron served as executive editor of the California Law Review and was elected to the Order of the Coif. Following law school, Aaron served as law clerk to the Honorable William H. Orrick and the Honorable Martin J. Jenkins, both United States District Judges for the Northern District of California.

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Aaron is the chair of our Technology Transactions Group. He advises clients on a wide range of complex transactions involving intellectual property and technology, including structuring and negotiating strategic licensing, development, collaboration, procurement, and distribution deals. Aaron’s practice focuses on advising both established and emerging companies in a variety of data– and technology–intensive sectors, including software, SaaS, cloud computing, AR/VR, AI, gaming, healthcare, consumer electronics, social media, e–commerce, other online business models, and mobile applications. He also maintains an active practice counseling companies on the intellectual property aspects of mergers, acquisitions, asset spin–offs, and private equity investments.

Aaron P. Rubin

Lawrence Gallick is of counsel in the firm’s Austin office and a member of the Technology Transactions Group.Lawrence focuses his practice on technology transactions and licensing matters. His diverse experience includes advising on SaaS agreements, cross-licensing agreements, research and collaboration agreements, development agreements, and distribution agreements. He counsels a broad range of companies across the software, hardware, life sciences, biotech and FinTech spaces, as well as other entities including universities.He advises clients in connection with general corporate matters including contract negotiations, and leasing and technology placement agreements.Lawrence also serves as co-editor of <a href="https://www.sociallyawareblog.com/" target="_blank">Socially Aware</a>, the firm’s award-winning newsletter and blog devoted to the law and business of social media, and regularly publishes on various IP and technology-related topics.Prior to joining the firm, Lawrence was counsel at another major law firm. Before earning his law degree, Lawrence was a web consultant, project manager, and web developer in Portland, Oregon, where he managed and consulted on projects using industry methodologies and performed custom development and integration of content management systems.Lawrence was named a Super Lawyers “Rising Star” in 2015 and 2018–2022, and is licensed in both California and New York. Lawrence earned his J.D. from the University at Buffalo School of Law, where he was the electronic systems editor for the Buffalo Law Review and awarded the ABA-BNA Award for Excellence in the Study of Intellectual Property Law.

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Lawrence Gallick

Anthony Ramirez is a partner in the Technology Transactions Group in the New York office of Morrison Foerster.Anthony advises clients on general commercial and transactional matters. He regularly advises companies on the IP aspects of their M&A transactions. His clients include technology, digital media and content for television and music, financial services, and communications companies with diverse intellectual property assets and issues.His practice focuses on the legal aspects of developing, licensing, and commercializing technology and intellectual property, as well as negotiating general commercial contracts, including outsourcing transactions, as well as content and data licenses. He regularly assists clients with legal issues relating to licensing and commercialization of digital media and content, digital content that is distributed over the Internet or streamed, mobile applications and social media, as well as the licensing of recorded music for distribution via digital platforms. Anthony is also experienced with issues relating to open-source software, software development, artificial intelligence and machine learning, cloud-based technology, and protection of proprietary information.Anthony has extensive experience working on matters involving disruptive technologies, such as blockchain. He has helped fintech clients with general intellectual property issues in connection with terms of service for online financial products and services.Anthony is an integral part of the outside pro bono legal team for nonprofit organizations based in New York, including advising clients on legal issues regarding entertainment, social media, privacy rights, and the negotiation of outsourcing and service agreements. Anthony received his J.D. from the University of Michigan Law School in 2009. He received his B.S. from Cornell University in 2004.

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Anthony Ramirez is a partner in the Technology Transactions Group in the New York office of Morrison Foerster. He advises clients on general commercial and transactional matters. His clients include technology, media, and communications companies with considerable intellectual property assets. His practice focuses on the legal aspects of licensing and commercializing technology and intellectual property, as well as negotiating general commercial contracts. He also regularly assists clients with legal issues relating to mobile applications and social media.

Anthony M. Ramirez

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Since its launch in 2011, the social media platform Snapchat has generated its share of negative press, with most of that press in some way related to the very 

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Building a Successful Social Media App: Four Lessons Learned From Snapchat

Building a Successful Social Media App: Four Lessons Learned From Snapchat | Socially Aware

Since its launch in 2011, the social media platform <a href="https://www.snapchat.com/" target="_blank" rel="noopener">Snapchat</a> has generated its share of negative press, with most of that press in some way related to the very characteristic that, at least initially, helped Snapchat to become popular among its mostly youthful user base: its “disappearing” messages feature.Yet, despite reports that the<a href="http://bits.blogs.nytimes.com/2012/05/06/disruptions-indiscreet-photos-glimpsed-then-gone/" target="_blank" rel="noopener"> app began as</a> (and <a href="http://www.dailydot.com/technology/snapchat-sexting-reddit-porn/" target="_blank" rel="noopener">continues to be</a>) a popular sexting tool, that Snapchat’s less-than-ironclad security measures resulted in<a href="http://www.cnet.com/news/overexposed-snapchat-user-info-from-4-6m-accounts/" target="_blank" rel="noopener"> the posting of millions of the app’s users’</a> personal information, and that <a href="https://www.sociallyawareblog.com/2014/05/13/snap-judgment-ftc-alleges-snapchat-did-not-keep-its-privacy-and-security-promises-but-suggests-broad-new-duty-in-the-process/" target="_blank" rel="noopener">Snapchat inaccurately represented its privacy and security policies</a>, Snapchat was the fastest growing app in 2014 and is the third-most-popular social app among millennials.So what accounts for Snapchat’s $19 billion valuation? According to senior Fortune editor <a href="http://fortune.com/2015/02/19/snapchat-worth-19-billion-more/" target="_blank" rel="noopener">Andrew Nusca</a>, the social media company has employed a “well worn” business model: “marshal a captivated audience, sell advertisements against it, profit.”Since that sounds a lot easier said than done—especially in light of Snapchat’s public missteps—we attempted to discern exactly how the company has managed to achieve those milestones. What has it done right?There is, of course, no exact formula for success; surely the rearing of all unicorns involves some measure of magic pixie dust. But a close examination of Snapchat reveals certain strategies that tech entrepreneurs seeking to duplicate Snapchat’s success might wish to emulate.<h4>1. Identify and pioneer a highly desirable feature.</h4>Because they encourage spontaneity and reassure social network users that they’re not sacrificing long-term privacy, disappearing messaging apps have been <a href="http://www.saydaily.com/2014/09/disappearing-updates" target="_blank" rel="noopener">popping up everywhere over the last couple of years</a>. But Snapchat was one of the very first social media companies to recognize the appeal of ephemeral posts—the app was premised on the claim that photos and texts sent using Snapchat disappeared after 10 seconds—and <a href="http://www.amazon.com/Youre-Not-First-Last-Competition/dp/0470624353" target="_blank" rel="noopener">being first never hurts</a>, especially when it comes to attracting an audience.In the last couple of years, however, doubts have arisen regarding Snapchat’s “disappearing messages” claims. Most notably, a 2014 Federal Trade Commission investigation concluded that, because several work-arounds exist, <a href="http://www.techtimes.com/articles/6853/20140512/snapchat-image-sharing-images-photos-videos-fcc-privacy-online-privacy.htm" target="_blank" rel="noopener">the company’s statements about its messages being ephemeral are essentially false</a>.Surprisingly, use of the Snapchat app <a href="http://www.globalwebindex.net/blog/snapchat-was-the-fastest-growing-social-app-of-2014" target="_blank" rel="noopener">continued to increase</a> even as the scandal broke, perhaps because, by then, Snapchat had already become popular with teenagers, or because the company had already implemented even more “<a href="http://time.com/4049026/snapchat-live-stories/" target="_blank" rel="noopener">addictive</a>” features (see numbers 2 and 3, below).Nevertheless, Snapchat has since toned down its <a href="https://itunes.apple.com/us/app/snapchat/id447188370?mt=8" target="_blank" rel="noopener">description of the app in the iTunes store</a>—the description now clarifies that Snaps disappear “unless [the recipients of the Snaps] take a screenshot”—and the company is also taking steps to beef up security and convince users that it’s worthy of their trust.<h4>2. Improve on a feature that has already proven popular with social media users.</h4>Snapchat’s reputation as the first “disappearing message” app may have been responsible for marshalling its young audience, but<a href="http://www.theverge.com/2014/6/20/5827666/snapchat-stories-bigger-than-snaps-electric-daisy-carnival" target="_blank" rel="noopener"> the social media company’s innovative online video features are likely the reason that audience has stuck around</a>.As a medium that allows people to easily “<a href="http://www.theguardian.com/small-business-network/2014/jan/14/video-content-marketing-media-online" target="_blank" rel="noopener">satisfy their information and entertainment needs</a>,” online video is one of social media users’ favorite features, industry experts agree. But the video functionality of many social media platforms has left a lot to be desired, according to some social media enthusiasts. Until now.In his own <a href="http://www.pocket-lint.com/news/131313-what-s-the-point-of-snapchat-and-how-does-it-work" target="_blank" rel="noopener">video</a> explaining Snapchat’s popularity, YouTube personality <a href="https://www.youtube.com/user/caseyneistat" target="_blank" rel="noopener">Casey Neistat</a> explains what online video fans have always wanted most from social media platforms: “It’s never been about just sharing a moving image,” Neistat explains. “It’s about giving people an easy way to tell a story.”With the introduction of Snapchat Stories, a feature that allows users to stitch several photos and quick videos together throughout their day to create a narrative, Snapchat “became the first company to figure out video on mobile,” according to Neistat.Snapchat Stories also have an authentic, unedited quality that the platform’s young users really appreciate. “You can’t, like, lie,” one of the Snapchat fans in Neistat’s video explains, “It’s in the moment.”“Snapchat is about now, not about photos with pretty filters or perfectly edited videos,” Neistat said. “It’s about sharing stories of your life with people who are interested.”<h4>3. Create compelling content by leveraging human resources.</h4>Recognizing that even the most sophisticated algorithms have limitations, many tech companies are starting to rely on human curators for their content, <a href="http://time.com/3973459/tech-human-curation/" target="_blank" rel="noopener">writes</a> Time tech reporter Victor Lukerson, and Snapchat is no exception. Snapchat Live Stories, a feature Lukerson <a href="http://time.com/4049026/snapchat-live-stories/" target="_blank" rel="noopener">describes</a> as the app’s “most addictive feature,” uses teams of actual people to choose from among as many as 20,000 user content submissions for each story. The curators create montages with narrative arcs by stitching together the best of the users’ photos and short video submissions.Based on the numbers—Live Stories reportedly attract 20 million viewers in a 24-hour window—Snapchat’s use of human curators is clearly paying off.<h4> 4. Give brands a unique and attractive way to advertise.</h4>With privacy concerns at an all-time high, social media users may become less inclined to patronize sites that use personal data to serve targeted ads, predicts Forbes contributor Jayson DeMers.That works for Snapchat. In contrast to most of the top social media platforms, Snapchat “has very little information about its users,” Time’s Lukerson <a href="http://time.com/4049026/snapchat-live-stories/" target="_blank" rel="noopener">reports</a>. And Evan Spiegel, Snapchat’s CEO, has <a href="http://www.adweek.com/news-gallery/technology/heres-buyers-guide-ad-targeting-8-social-platforms-167754" target="_blank" rel="noopener">said</a> that he doesn’t want to populate his platform with “creepy” hyper-targeted ads.Snapchat’s abstention from user-info aggregation may or may not prove important to its youthful user base; the <a href="http://www.adweek.com/news-gallery/technology/heres-buyers-guide-ad-targeting-8-social-platforms-167754" target="_blank" rel="noopener">nearly 100 million daily users</a> who continue to log in despite reports about the holes in the platform’s “disappearing messages” claim apparently don’t place as much of a premium on privacy as everyone originally thought.The important part is that Snapchat has hit on another—potentially more lucrative—way to monetize its business. According to Lukerson, the company “is pitching advertisers the same way TV executives do: by touting the massive audience that can view a single piece of media at the same time.”<a href="http://adage.com/article/digital/snapchat-tweaking-story-ad-sales-strategy/298082/" target="_blank" rel="noopener">Advertisers love content that’s live</a>, and Snapchat’s Live Stories are exactly that. Snapchat’s presentation of its live content in a linear feed makes it <a href="http://adage.com/article/digital/snapchat-tweaking-story-ad-sales-strategy/298082/" target="_blank" rel="noopener">very much like live event feeds on television</a>, a medium that Snapchat’s coveted demographic is slowly but surely <a href="http://www.marketingcharts.com/television/are-young-people-watching-less-tv-24817/" target="_blank" rel="noopener">abandoning</a>.Advertising on the platform is still risky. After just three seconds, <a href="http://www.fastcompany.com/3052407/behind-the-brand/how-coca-cola-cracked-snapchat?partner=venturebeat" target="_blank" rel="noopener">60% to 70% of Snapchat’s users stopped watching ads</a> on the app. For that reason, some industry observers <a href="http://www.fastcompany.com/3052407/behind-the-brand/how-coca-cola-cracked-snapchat?partner=venturebeat" target="_blank" rel="noopener">assert</a> that Snapchat advertising is still probably best left to big brands with big advertising budgets.And a big budget they’ll need. Snapchat has been tight-lipped about exactly what it’s charging, but, according to sources familiar with the business, the platform is selling $400,000 worth of ad space for a story generating 20 million views.