Once upon a time, in the world of web3, there were two entrepreneurs: Harry and Sally. Harry thought he was a maverick and decided to go it alone, ignoring the need for legal counsel. Sally, on the other hand, knew better than to play Russian Roulette with her business and had an experienced lawyer on her side.
Harry was so eager to launch his business that he forgot to dot his I’s and cross his T’s. He neglected to set up his business as a proper legal entity, failed to obtain liability insurance, and thought a couple of Twitter DMs and a handshake were all you needed to prove a legally binding agreement. It didn’t take long for things to go awry.
His clients sued him left and right, because of misunderstandings with some also claiming they hadn’t received the services they paid for. To make matters worse, the federal government accused Harry and his team of wire fraud for transferring questionable funds electronically between states and other countries. The fines, legal fees, and tax issues piled up, and Harry had to kiss his business goodbye.
Meanwhile, Sally knew what she was doing. She hired an experienced lawyer to guide her through all the important decisions. Sally set up her company as a corporation and used it to wrap around a new DAO. She was careful to use smart contracts and traditional written agreements to control the decisions of everyone in the business.
Sally even had her lawyer help with contracts and terms of service agreements which specified venue and what law would apply to claims and disputes, to use with her clients. When disputes did happen, the agreements required everyone to resolve those disputes in Sally’s home town. This kept Sally and her team from having to travel to other states and even other countries to deal with legal issues.
Sally made sure to have proper liability insurance, and when a claim was brought, the insurance company handled everything. As business picked up, Sally’s lawyers advised her to hire a CPA, who counseled her to make certain business tax decisions that reduced her liabilities on taxable income at the end of the year. As she rolled out NFT tokens to create new client experiences, the lawyers showed Sally how to do business without violating SEC rules and regulations.
Harry learned the hard way that seeking legal advice is not an option but a necessity for any web3 entrepreneur. Sally’s success story showed that the right legal advice can make all the difference in the world of web3.
And just in case you missed them, here are the top 20 reasons why Sally chose to have experienced lawyers help her with starting and running her business. Harry probably should have paid attention to this list, but alas, he was too busy listening to the wrong people giving bad advice on a Twitter Space.
Getting experienced legal advice allowed Sally to:
#1: Get personalized legal and business advice tailored to your specific needs and goals.
#2: Ensure compliance with complex regulations and laws in the web3 space.
#3: Protect your intellectual property and assets, including trademarks, patents, and copyrights.
#4: Review and negotiate contracts, including smart contracts, NFTs, and other blockchain-based agreements.
#5: Stay informed of the latest legal and business developments in the web3 space.
#6: Develop a comprehensive legal strategy that aligns with your business goals and objectives.
#7: Draft legal documents and agreements, including terms of service and privacy policies.
#8: Manage and mitigate legal risks associated with operating in the web3 space.
#9: Resolve disputes with other parties, including mediation, arbitration and litigation.
#10: Ensure compliance with tax laws and regulations in the web3 space.
#11: Conduct due diligence on potential business partners, investors, or acquisitions.
#12: Implement effective corporate governance and compliance programs.
#13: Protect your personal assets and limit personal liability in business transactions.
#14: Provide guidance on fundraising and financing, including ICOs and STOs.
#15: Develop a comprehensive cybersecurity strategy to protect against hacks and data breaches.
#16: Navigate the complex legal and regulatory landscape of web3, crypto and metaverse.
#17: Provide guidance on cross-border transactions, operations and international law issues.
#18: Develop strategies for resolving disputes through alternative dispute resolution methods.
#19: Help ensure compliance with anti-money laundering laws and regulations.
#20: Provide guidance on the use of AI in the web3 space, including ethical considerations and potential legal issues.
While some of these benefits may seem obvious, such as ensuring compliance with complex regulations and laws or protecting intellectual property, others may not be as apparent. For example, Sally never even considered the importance of developing a comprehensive cybersecurity strategy or the need for guidance on the use of AI in the web3 space.
After successfully blocking an attempted hack on her discord community, she’s glad she followed her lawyer’s advice and cybersecurity recommendation. Her lawyer’s advice about the inability to copyright AI generated images is what saved Sally from a massive lawsuit after her client wanted to use a new AI generated monkey as its new mascot during a $7M 30 second Super Bowl ad.
By utilizing experienced legal counsel, web3 creators, business owners, and entrepreneurs can rest assured that they have the necessary support and guidance to succeed in the new digital landscape.
Please stay in touch and make today your masterpiece!
Mitch Jackson, Esq.
2013 California Litigation Lawyer of the Year
2009 Orange County Trial Lawyer of the Year
⚖️ I’m a lawyer with three decades of experience who enjoys helping others and doing all I can to add value to our community.
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