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.

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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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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.

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Socially Aware is devoted to the law and business of social media, proactively addressing emerging issues and keeping our clients informed of new developments. We cover fields such as artificial intelligence, privacy and data security, Section 230, intellectual property, and much more.

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Lawrence W. Gallick

Federal Court Enjoins California Teen Privacy Law . . . Again

All Your Sale Are Belong to Us - Mitigating IP and Payments Risk in In-Game Economies (Part II – User-Generated Content and In-Game Payment Models)

A New California Digital Content Law Establishes New Requirements for Advertisers and Vendors

California’s Assembly Bill 587 Loses Key Provisions After Legal Challenge from X

Social Links: TikTok Tussles, Teen Privacy Push, and the Thumbs-Up That Sealed the Deal

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Looks like WhatsApp just leveled up—whether it wanted to or not. Meta’s messaging giant has officially been crowned a <a href="https://digital-strategy.ec.europa.eu/en/policies/dsa-vlops" target="_blank">Very Large Online Platform</a> (VLOP) under the European Union’s <a href="https://digital-strategy.ec.europa.eu/en/faqs/digital-services-act-questions-and-answers" target="_blank">Digital Services Act</a> (DSA), which basically means, “Congrats, you’re now under extra scrutiny!” What does it take for an online platform or search engine to become a VLOP? Just a casual 45 million users—a threshold the European Commission says WhatsApp crossed last year. According to European Commissioner Thomas Regnier, <a href="https://www.theverge.com/2023/6/8/23753404/whatsapp-channels-broadcasts-app" target="_blank">WhatsApp Channels</a> (its broadcasting feature) averaged about 46.8 million monthly active users over the last six months of 2024. That’s a lot of people forwarding memes. But under the DSA, great user numbers comes great regulatory responsibility. WhatsApp had to tweak its <a href="https://www.whatsapp.com/legal/privacy-policy" target="_blank">privacy policy</a> on February 16 to reflect its newfound status under the DSA, which means it now has to offer ways for users to report illegal goods, shady services, and generally sketchy content—which, considering how much weird stuff circulates in group chats, might turn out to be a full-time job for some poor compliance team. The DSA is also implementing stricter controls on targeted ads, especially when it comes to children. Perhaps most importantly, European WhatsApp users now get more control over their data, including the right to opt out of recommendation systems and profiling. WhatsApp now joins its Meta siblings Facebook and Instagram in the VLOP club—a distinguished group of platforms now blessed by regulatory bodies with more regulations, more legal disclaimers, and more pop-ups about privacy rights.CONNECTICUT WEIGHS SOCIAL MEDIA AGE RESTRICTIONSConnecticut lawmakers heard testimony on a bill proposed by state Attorney General William Tong (<a href="https://legiscan.com/CT/text/HB06857/id/3099662" target="_blank">HB 6857</a>) that would restrict social media algorithms from targeting kids. The measure would limit the content anyone under age 18 would see by banning the use of personal data to drive recommendations, setting rules on when notifications can be sent, and restricting who can interact with their posts. At a <a href="https://www.courant.com/2025/02/11/ct-ag-tong-seeks-to-protect-kids-from-social-media-addiction-by-restricting-algorithms-notifications/" target="_blank">press conference</a>, Tong compared these algorithms to “behavioral cocaine,” claiming they fuel an online addiction by relentlessly doling out more and more extreme content. In a rare moment of bipartisan agreement (it happens), a handful of lawmakers jumped onboard, arguing that, with youth depression on the rise, it’s time someone reined in social media’s profound influence on children. Supporters say the bill empowers parents, sets reasonable limits, and holds companies accountable. Tech companies and their cheerleaders argue that algorithms can actually protect kids online, suggesting the focus should instead be on teaching children digital literacy. The bill is very similar to legislation proposed, or already in place, in multiple states—as <a href="https://www.sociallyawareblog.com/topics/just-a-minor-threat-online-safety-legislation-takes-off" target="_blank">your favorite blog recently covered</a>.PAYWALLS FOR REDDITReddit, a platform widely celebrated for its open sharing of information, is now testing the waters with paywalls. In a recent <a href="https://www.reddit.com/r/RDDT/comments/1ip2tf5/amaa_video_reddits_q4_2024_earnings/" target="_blank">video AMA</a> (Redditspeak for “Ask Me Anything”), CEO Steve Huffman revealed that the company is officially flirting with selective paid access. Later this year, Reddit will roll out a paid subreddit feature, a move that Huffman described as still in its “early stages.” This <a href="https://www.sociallyawareblog.com/topics/social-links-recent-developments-in-the-law-and-business-of-social-media" target="_blank">isn’t the first time</a> Reddit has hinted at premium content—last year, Huffman casually floated the idea of subreddits with private VIP areas, exclusive posts, and the kind of pay-to-play access that makes the internet feel less like a friend’s house party and more like a nightclub with a cover charge. This comes in the wake of Reddit’s <a href="https://www.investopedia.com/reddit-earnings-q4-fy2024-8789793" target="_blank">quarterly earnings report</a>, which has the company laser‑focused on increasing revenue. Since going public, Reddit has been determined to boost returns for shareholders—even if it means transforming the user experience. Many longtime users have grumbled about the <a href="https://www.zdnet.com/article/reddit-has-a-new-way-to-put-more-ads-into-your-feed-heres-what-to-watch-for/" target="_blank">number of ads</a>, particularly on the platform’s mobile app, and the licensing of user-generated content to third parties. The fundamental question is this: Will users be willing to pay for a premium version of a forum that became successful largely because it was free?SENATORS PUSH FOR SWEEPING CONTROLS ON SOCIAL MEDIASome lawmakers in Washington have decided that social media is officially too dangerous for kids. Enter the <a href="https://www.congress.gov/bill/118th-congress/senate-bill/4213/text" target="_blank">Kids Off Social Media Act</a> (KOSMA), a bill that sounds like something designed by a suburban parent who just discovered TikTok. The legislation, which recently <a href="https://www.politico.com/newsletters/future-pulse/2025/02/05/senate-commerce-approves-bill-banning-social-media-for-kids-under-13-00202469" target="_blank">inched forward</a> in the Senate Commerce Committee, would block anyone under 13 from creating social media accounts and limit recommendation algorithms for users under 17. The bill comes from the political odd couple of Brian Schatz (D-HI) and Ted Cruz (R-TX), two senators who are typically opposed on most policy issues. The senators argue that social media is fueling an “unprecedented mental health crisis” among young people and sweeping legislation is the only way to stop it. Enforcement would fall on the Federal Trade Commission and state attorneys general, so we’re probably looking at a chaotic, lawsuit-riddled rollout if the bill becomes law. KOSMA would determine a user’s age in a rather <a href="https://www.schatz.senate.gov/kosma" target="_blank">dubious fashion</a>. Instead of standard ID checks or parental consent forms, social media companies will have to guess how old someone is by using data they already have. “The guessing is going to be, in some measure, inaccurate,” admitted <a href="https://cdt.org/staff/kate-ruane/" target="_blank">Kate Ruane</a>, director of the Free Expression Project at the Center for Democracy and Technology. That’s a nice way of saying millions of kids will either get locked out of their accounts or continue scrolling undetected because an algorithm thought they were a 32-year-old accountant from Nebraska. Meanwhile, Big Tech is <a href="https://netchoice.org/kosma-is-yet-another-proposal-that-would-harm-cybersecurity-parental-rights-and-speech-congress-must-find-another-way/" target="_blank">already working</a> to get ahead of the new wave of internet age-gating laws, as we’ve covered at length in recent weeks. Senator Schatz maintains that KOSMA is meant to work alongside existing federal efforts like the <a href="https://www.congress.gov/bill/118th-congress/senate-bill/1409/text" target="_blank">Kids Online Safety Act</a> (KOSA) and the <a href="https://www.congress.gov/bill/117th-congress/senate-bill/1628/text" target="_blank">Children and Teens Online Privacy Protection Act</a> (COPPA 2.0), both of which passed last year. The bigger question is whether any of this will fix anything. Will banning 12-year-olds from Instagram prevent anxiety? Will neutering an algorithm make teenagers less obsessed with their phones? Or will all of this lead to a new underground economy of fake adult accounts and kids finding new, more creative ways to outsmart the very system designed to protect them?TEXAS COURT BLOCKS SCOPE ENFORCEMENTOn February 7, the U.S. District Court for the Western District of Texas <a href="https://www.thefire.org/sites/default/files/2025/02/Order%20Granting%20In%20Part%20and%20Denying%20in%20Part%20Plaintiffs%27%20Motion%20for%20Preliminary%20Injunction%20-%20Students%20Engaged%20in%20Advancing%20Texas%20v.%20Paxton.pdf" target="_blank">hit the pause button</a> on parts of the state’s <a href="https://www.texasattorneygeneral.gov/consumer-protection/file-consumer-complaint/consumer-privacy-rights/securing-children-online-through-parental-empowerment" target="_blank">Securing Children Online through Parental Empowerment Act</a>—or, as it’s more commonly known, the SCOPE Act (every law needs a catchy acronym). Passed in 2023, the law was designed to place restrictions on digital service providers to protect minors online. But the SCOPE Act has been in legal limbo for a while. In <a href="https://caselaw.findlaw.com/court/us-dis-crt-w-d-tex-aus-div/116552643.html" target="_blank">Computer & Communications Industry Association v. Paxton</a>, the court blocked some SCOPE provisions before they even had a chance to go into effect. The current case was brought by <a href="https://www.studentsengaged.org/about" target="_blank">Students Engaged in Advancing Texas</a>. They sued Texas Attorney General Ken Paxton, arguing that the law tramples on free speech. The court agreed for the most part, ruling that the SCOPE Act regulates content and, therefore, must pass strict scrutiny—a very high bar to clear. Judge Robert Pitman found that certain parts of SCOPE, including rules on monitoring and filtering content, targeted ads, and age verification, did not pass strict scrutiny and cannot be enforced pending a final judgment in the case. Some provisions were also ruled too vague—because if a law leaves people scratching their heads, that’s generally a problem. For now, none of the combatants show signs of capitulation and the SCOPE saga appears to be far from over.

Social Links: Milestones, Paywalls, and ‘Behavioral Cocaine’

Lawrence Gallick is of counsel in the firm’s Austin office and a member of the Technology Transactions Group.

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.











Anthony Ramirez

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.