Dot coms don’t appreciate legal risks
Despite investor demands for tighter dot com management controls, B2B and B2C companies still have little awareness of their exposure to legal risk By Nigel Page
The technology, media and telecom sector crash on both sides of the Atlantic was expected to introduce a back-to-basics approach by dot com companies. Old economy business principles were, supposedly, poised to redefine dot com attitudes, as these companies sought to persuade investors that their businesses were founded on more than just promising ideas.
However, according to a recent survey by Landwell, the correspondent legal practice of PricewaterhouseCoopers, this has not translated into a high awareness of legal risks. The report is part of a survey jointly carried out with PwC between July and October 2000, canvassing the views of 400 managers in European dot coms (split between the UK, France, Germany and the Netherlands), and including a further 100 interviews with heads of legal across a cross-section of companies operating in the B2B and B2C sectors.
For investors, analysts and advisers to the internet sector, the report adds to their worrying reading.