Many of the potential problems associated with employee Internet access involve downloading information. For example, employees can download the software is copyrighted, offensive material or files that have been infected with harmful computer viruses. Small businesses can be held legally responsible for damages resulting from claims of copyright infringement, racial discrimination and sexual harassment on the basis of information downloaded. Another potential problem by giving employees access to the Internet, personal use, which reduces productivity. According to a survey by the International Data Corporation (IDC), and reported in Business Week, excessive personal use of the Internet at work accounted for 30 to 40 per cent decline in productivity, the value of companies that have an estimated $ 54 billion a year. "What in the world leakage in their hands, many have become multitaskers multislackers, doing everything from ordering cabinets spring, summer vacation plans on board tropical cyberaffairs, a day-trading their portfolios, and eBaying [online auction] his property," Business Week article noted.

Risks associated with service internet useage.In his book Clicking Through: A Survival Guide for Bringing Your Company Online, Jonathan Ezor mentioned several companies may face risks as a result of employee Internet use. These risks include liability for copyright infringement as a result of downloading documents or proprietary software; criminal gambling, fraud perpetrated on the Internet, or downloading illegal material, the effects of sexual harassment or racial discrimination on the basis of the charges downloading offensive material, and the breach of privacy and security companies.

As explained Ezor, mainly material published on the World Wide Web site. Internet users have an indirect licence to copy information for the purpose of viewing them on a computer screen. But it is implied license applies only to one user and one-time use. Many people do not understand this condition is to keep materials, documents or programs on the hard disk and reuse them without permission. Also, some Web sites known as pirate sites regularly display and disseminate information to which they have no copyright. A small business employees can download pirates proprietary software from the site and mistakenly believe that they can use it. As the legitimate copyright owners little legal protection from pirate sites, which often operate on poor students, they may choose, and to assert their rights against major criminals, as well as businesses. Small businesses can be held liable for copyright infringement if illegal software on company computers, and even in the case of a pirate on the PC to play music or watch pirated movies, as well as monetary damages can be significant.

Small businesses can also be held criminally responsible, as a result of employee Internet use. One such risk involves gambling. Ezor noted that the online casinos are commonplace, which may encourage employees to participate in the auction using the machine during working hours. As is the case with other forms of gambling, a wide range of state laws and local regulations are applied in practice. Small businesses can be held liable if employees break these laws. Indeed, regulators, casino debt collectors, and affected family members are likely to make the company the object of lawsuits, not an individual employee.