3 ms·
In the U.S. legal system, is it possible to create a corporation specifically to do something of uncertain legality, so as to limit the liability? E.g., could
by CoastalCoder 3y ago
In the U.S. legal system, is it possible to create a corporation specifically to do something of uncertain legality, so as to limit the liability?
E.g., could we create a FuckYouMazda corporation, whose sole purpose was to develop this software. And if Mazda successfully sued for copyright damages, the financial liability is limited to the corporation's assets?
- malfist 3y agoCorporate protections don't work like that, or every petty criminal would be a corporation. Knowing, deliberate actions of criminality are sufficient to piece the corporate veil.
- CoastalCoder 3y agoSorry I wasn't clear: I was specifically asking about limiting the liability of possible civil violations of the DMCA. I.e., the alleged violations are civil rather than criminal, and a reasonable person might believe Mazda's DMCA claims are unjustifiable.
- malfist 3y agoI think naming your company `FuckYouMazda` and violating their copyright gives a judge plenty of incentive to pierce the corporate veil.
- CoastalCoder 3y agoYou might be missing my point: the corporation would be premised on its founders' sincere belief that Mazda's DMCA claims were, at best, dubious.
- kelnos 3y agoI don't think that premise really matters. You could sincerely believe that murder was ok, but that's not going to change how the law would view you murdering someone. The idea around "piercing the corporate veil" is that you can't just slap a company in front of your actions -- regardless of whether or not you believe your actions are justified or legal -- and avoid legal consequences.
- mminer237 3y agoExactly how liable the shareholders are is going to vary a lot by state. Generally a plaintiff has to show the shareholders exercised excessive control over the corporation such that the corporation is essentially a sham. However, a person is generally liable for his own torts regardless of corporation. The shareholders might not be liable vis-à-vis the corporation, but the actual programmers and managers doing the infringement could likely be sued individually the same as if they weren't working for a corporation.