bigredrude wrote:
Nope.. they simply donated to support the project in exchange for some (marginal) benefits. Lots of people on this thread have referred to funders as investors.. it may seem like just semantics but it's not. If you take investor money you have fiduciary duties associated with that. The bar is way, way lower on Kickstarter and I can't imagine that what happened to Taren is that unusual on there.
And for those that said people are investors and therefore are entitled to their money back because things aren't working out. That's also not how it works anyway (I know, I know you can sometimes get a put option on your investment but that's not what we're talking about here).
I'll crawl back in my hole now
Actually you're incorrect. They purchased a piece of an end product. Although not shareholders they are in a sense "creditors". Depending on what level "reward" the person purchased, if the project fails and he cannot fulfill the "rewards" he is required by Kickstarters Terms of Use to refund all backers who do not receive their "reward". Now, enforcing that provision does require legal action (specifically based on the last sentence). So I would say yes it's similar to a stockholder that feels they've been defrauded and then sues the company and names the CEO and board chair in the suit rather than a stockholder just cutting their losses at market.
Kickstarter wrote:
Is a creator legally obligated to fulfill the promises of their project?
Yes. Kickstarter's Terms of Use require creators to fulfill all rewards of their project or refund any backer whose reward they do not or cannot fulfill. (This is what creators see before they launch.) We crafted these terms to create a legal requirement for creators to follow through on their projects, and to give backers a recourse if they don't. We hope that backers will consider using this provision only in cases where they feel that a creator has not made a good faith effort to complete the project and fulfill.
Washed up footy player turned Triathlete.
Last edited by:
TheStroBro: Oct 26, 18 7:42