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The theme of Monday's ALM program, "Social Media: Risks & Rewards" -- geared at corporate counsel -- was the question of whether the rewards of using new social networking technologies are greater than the risks of using these new tools.

Actually, there's a second layer of risk analysis: Are the hazards of not using social networking so great that you simply must dive in?

Based on conversations during the event, the over-riding consensus of the panelists and attendees at the day-long event, held at New York City's Harvard Club, was that the risks are indeed very real, and that savvy companies must not only protect their intellectual property, and brands ? but that there are opportunities to use these same tools to proactively promote their companies.

I moderated the first panel, which featured speakers from MasterCard Worldwide; CNN Worldwide; NBC Universal (are we noting a theme here re: global) and an of-counsel lawyer to a small firm.

MasterCard's Cheryl Givner kicked off the discussion with a funny but spot-on example of how very, very risky it can be ignore criticisms aired on social media, such as YouTube or Twitter. Canadian musician Dave Carroll (www.davecarroll.com), frustrated when United Airlines did not respond to his requests for reimbursement for damage to his Taylor guitar, took his complaint to YouTube -- not once, but twice. 

His musical complaint went, in web parlance, "viral" within 48 hours (think Susan Boyle). Carroll's first song got about 350,000 hits within two days, and to date, has more than 5.5 million hits. It even spawned several ancillary spoofs and a serious response from Taylor Guitars (with helpful information about TSA rules, and also an opportunistic pitch that the company could fix just about any guitar). The matter apparently was close to  resolution shortly thereafter. (And United, btw, actively uses Twitter now, with contests and updates, @unitedairlines.)

During the panel, we also fired up the still-famous YouTube video that pokes fun at what happened when Nixon Peabody "lawyered up" to try to squash a viral YouTube feed of its um, er, really perky cheerleader-esque victory song distributed internally after the firm won an award. In one of those you-hadda-be-there-moment, that triggered an hilarious spontaneous disclaimer from an attending Nixon Peabody attorney, that was almost as funny as the YouTube post.

"YouTube video demonstrates the power and reach of social media," observes Givner. "The conference helped to solidify the view that social media is a channel not to be ingored, and has been used successful not only by consumers, but in the corporate and media worlds, as well as in the political arena," she says.

Which segues us perfectly to Andy Mitchell's presentation about how CNN exploited social media -- including an experiment with Facebook -- during the Obama election. His PowerPoint (Download Andy Mitchell - CNN Incisive Media) illustrates some of the ways the two companies integrated their online content, and then even came up with clever ways to brand, market,and promote the tandem (e.g., "build it yourself T-shirts) --even addressing the risk that consumers might get a bit, um, er, cheeky.

Michele Mitchell of NBC Universal, and Nicole Black, of  counsel to Rochester, N.Y.'s Fiandach & Fiandach, rounded out the panel, with excellent advice as to best practices.

Black stayed the entire day, and "live-tweeted" the conference (#lsmc) on Twitter. (@nikiblack). She noted how the day's panelists covered a wide range of topics, and considered SocMedia impact "from a marketing and damage control perspective," rather than "the perspective of how lawyers are using it."

One panelist addressed the legal issues raised when companies launch sweepstakes or contests via social media. Noted Black: "It never occurred to me that when marketing runs sweepstakes, what lawyers have to deal with," referring to a discussion of what regulatory requirements can be triggered.  "It's a minefield for the lawyers to make sure that everyone else knows the right procedures and guidelines."

The panels covered a broad range of topics, including how to develop corporate policies for social media (which addresses HR issues, as well as protecting IP, employee free speech, and more, and is a topic we will soon be addressing in Law Technology News). Other speakers addressed how to protect your company's identity and intellectual property. I found particularly interesting Lesley Rosenthal's on social media for not-for-profits, which raised a panoply of issues not faced by many corporations -- particularly about being careful to be sure that all art used in promotions is properly credited and paid for. (She's vice president, GC and secty of the Lincoln Center for the Performing Arts.)

American Express' Mark Bisard cautioned attendees that it's critical to authenticate employees and usernames used for social media; many suggested that companies set up an area on their websites where they list their "official" handles/voices so consumers can be assured they are verified. (Twitter is now offering "verified" status to celebrities such as @nickswisher, who are often subject to fakes (just search for Derek Jeter to see a zillion phony handles).

Bisard urges corporate counsel to create numerous policies, for everything from privacy, vendors, internet use, and social media. "Make sure your policies are consistent," says Bisard, "and that your leaders follow your policies." And, he advises, be sure you have a "rapid response plan for when somebody flames you."

These are just a few of the highlights of the event, which we are looking into offering again this year, on the west coast. (Watch the 'Scold for updates, or check www.almevents.com).

Wells Fargo's Paul Mussell, senior counsel, intellectual property group, told the audience that they "need to where your customers are. If they're on Twitter, be there. Participate -- or others will do so on your behalf," he warned. "Instead of just monitoring social media, interact with the customers. Engage in the conversation; fill in the vacuum."

"Ed Post," the anonymous lawyer/blogger who runs BlawgReview, and Tweets at @blawgreview sums it up: The event, he says, "brought together in-house counsel and corporate lawyers with real experience using social media. Those relatively new to social media learned from others -- such as Mussell, -- that the risks are manageable. Sooner than later, all legal counsel will be expected to be adept at advising their corporate clients how to manage those risks."

Says attendee Peter Markman, associate general counsel of Progress Software: Social media is "clearly not a fad, because it's just the current extention of communication ? which is as old as people themselves. ...The consistent theme was the speed at which things happen, and the need to be prepared and monitor process and respond to things that happen at a pace much faster than anything that would have happened in the past." 

"Ed Post" channels Thomas Paine: "The choices for corporate counsel seem clear: lead, follow, or get out of the way."

LTN associate editor Theodora Blanchfield contributed to this report.

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