Digital products are all the rage right now in the online business world.

Everywhere you look, it seems like everyone is trying to create some sort of digital product that they can sell in order to earn “passive income.”

And I put that in quotes because I don’t really believe that any income is completely passive. 

Most of the time, you have to put in some sort of ACTIVE work in order to sell the “passive product,” but I digress…

There’s stay at home moms jumping on the digital product train, teachers who want to add more to their monthly paycheck, business owners who want to add something new to their product suite, the list goes on. 

And honestly, I’m here for it! I mean heck, I have a whole business centered around digital products. 

But as your lawyer bestie, I’ve gotta warn you – digital products are often the most common type of product that the copycats of the world try to rip off. 

I’ve seen it happen way too many times with clients, friends, and have unfortunately even experienced it myself. 

Which is why in this blog post I’m giving you all the tea on how to protect the digital products that you spend your precious time creating so YOU can get all the credit and can hopefully avoid any copycat issues right from the get go.

(But don’t worry – if you DO happen to experience the unfortunate, I’ve got you covered there too!)

What Are Digital Products?

First things first, let’s make sure we’re on the same page about what digital products are!

Essentially, they’re exactly what they sound like. 

Digital products are any type of product that is created, stored, and delivered in a digital format. Unlike physical goods, digital products do not require manufacturing, inventory management, or shipping logistics, which can reduce costs and streamline distribution.

Some common examples of digital products in the online space include:

• Templates (like ours!)
• Software
• E-books
• Courses 
• Music
• Video Content
• Mobile Apps

The options are truly endless when it comes to the types of digital products you can create!

Regardless of the type of digital product you create to sell, you want to make sure that you protect them all in the same way.

How To Protect Your Digital Products In The Online Space

When it comes to protecting your digital product in the online space, there’s two main things you want to have in place: Terms of Use and Disclaimers.

The Purpose of Terms of Use For Digital Products

Terms of Purchase are often referred to as Terms and Conditions and essentially outlines the specific terms of a transaction and covers policies that are a part of the purchase process, such as refunds, chargebacks or cancellations.

Your Terms of Purchase will often include your Terms of Use as well, which outlines the rules and guidelines that users must adhere to while using the product or service, including restrictions on usage, intellectual property rights, user-generated content policies, privacy practices, disclaimers of liability, and any other terms relevant to the user’s interaction with the product or service.

Both of these are legal agreements that can directly protect you and your products if or when you’re ever in an instance like I described above where someone is copying or straight up stealing your work to pass off as their own!

The KEY with both of these is that you make them incredibly clear when someone purchases from you, by going beyond the typical checkbox that you see at checkout.

While a clickwrap IS important to include, I suggest taking it a step further by including a downloadable PDF or something similar with the Terms of Use with every purchase, clarifying that the work cannot be resold or redistributed!

Ultimately, your Terms of Use aims to protect you as the creator or provider of the digital product. By clearly outlining what is permissible and what is not, you can mitigate legal risks. 

The Purpose of Disclaimers For Digital Products

In addition to Terms of Use, you also want to make sure that you’re implementing disclaimers when necessary!

Disclaimers are statements that aim to limit the liability of you as the product creator and are particularly important for digital products that provide information, advice, or recommendations. 

A disclaimer informs users that the information provided is not guaranteed to be accurate, complete, or suitable for any particular purpose.

Depending on the type of digital product that you’re selling, you may need a few different types of disclaimers, such as:

• Content Disclaimers – these disclaimers state that you are not responsible for errors or omissions in the content and that the information is provided “as is.”
• Health and Fitness Disclaimers – for digital products related to health, wellness, or fitness, disclaimers can indicate that the product is not a substitute for professional medical advice and that users should consult a healthcare professional before making decisions based on the product.
• Financial Disclaimers – digital products offering financial advice or information should include disclaimers stating that the content is for informational purposes only and not a substitute for professional financial advice.

In my case as a lawyer, I have to use a Legal Disclaimer like this so that my audience understands I am not offering legal advice!

If you’re not sure if your industry has a specific disclaimer that you should be using, typically a General Disclaimer will do the job!

Overall, disclaimers are essential in protecting you from legal claims. By explicitly stating the limitations of the product and the responsibilities of the user, disclaimers can reduce the likelihood of your audience or customers taking legal action based on perceived damages or misinterpretations of the product’s content.

While Terms of Use and Disclaimers serve distinct purposes, they often intersect and complement each other. Both documents aim to protect you and your digital product by setting clear guidelines for the user!

For example, a digital product’s Terms of Use may include disclaimers within its clauses, providing comprehensive legal coverage.

But it’s still important that you fully implement BOTH!

More Resources For Protecting Your Digital Products

Overall, the digital product space can be a great space to be in as a business owner or simply as someone who’s looking to make some extra money in a fun way, but when you’re selling anything – whether it’s online, offline, physically, or digitally – you must take the necessary steps to protect you AND your creations!

⭐️ Understanding Digital Product Licenses

⭐️ 5 Hardest Working Clauses in Your Terms of Purchase for Digital Products 

⭐️ How to Legally Protect Your Business Against Chargebacks in Your Digital Product Based Business

⭐️ 4 Simple Ways To Stop Misuse of Your Digital Products

And if you really want to make sure that your digital products are legally backed, download the free Digital Product Legal Policies Checklist!

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If we haven’t had the chance to *virtually* meet yet, hey I’m Amber – not a regular lawyer, but a cool lawyer that helps online business owners sell without getting sued. 

If you like what you just read and want more cool lawyer things in your life, here’s a few ways to stay connected:

Let’s be pen pals! Subscribe to my email list to receive all of my best biz tips and behind the scenes goodies to keep your business bringing in sales (legally of course).

Binge the blog to get all of the legal information you need about running a business in a way that actually makes sense to your non-legal brain.

Come hang with me on the ‘gram! I often do AMA’s on stories, so you can submit your specific questions when they come up.

And if you’re in need of legal resources that you can ACTUALLY understand? Here’s a few ways I can help:

Step into TBL’s free library of legal resources for creative entrepreneurs where we throw open the doors and spill the tea on what works and what doesn’t when it comes to legal protection, systems and sales.  

Browse the contract template shop to find what’s missing in your biz and easily implement it with a plug and play template!

Need something else? Send me a DM! Always happy to lend a legal hand when I can.