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A mob of angry users filled the spaces of social media sites today in reaction to new terms of service and privacy policies published by Instagram, a photo sharing application owned by Facebook, giving the service rights to use its users’ information and contents as a means of generating revenue.
In an unadultered form, I am posting that particular portion of the new terms of service, effective on 16th January 2013, that reads:
“By displaying or publishing (“posting”) any Content on or through the Instagram Services, you hereby grant to Instagram a non-exclusive, fully paid and royalty-free, worldwide, limited license to use, modify, delete from, add to, publicly perform, publicly display, reproduce and translate such Content, including without limitation distributing part or all of the Site in any media formats through any media channels, except Content not shared publicly (“private”) will not be distributed outside the Instagram Services.”
Instagram, however, said the contents, particularly photos and comments made on them, that the company will be granted rights to are those that were set by users to be publicly viewed.
“Nothing has changed about your photos’ ownership or who can see them,” Instagram said in its blog.
Necessary
The new policy is deemed a necessary revision of the existing terms, following the US$1 billion acquisition of Instagram by Facebook, the largest social networking site, in April, for the integration of both services.
“Our updated privacy policy helps Instagram function more easily as part of Facebook by being able to share info between the two groups,” Instagram stated.
Facebook’s own policy on sharing content and information, deemed agreed by users upon signing in to the service, essentially reads the same.
“For content that is covered by intellectual property rights, like photos and videos (IP content), you specifically give us the following permission, subject to your privacy and application settings: you grant us a non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use any IP content that you post on or in connection with Facebook (IP License).”
Oh yeah, did we mention it’s free?
Established in 2010, Instagram was designed as a free photo sharing application allowing its 100 million users to add designs to their images and post them on social networks.
“Oh yeah, did we mention it’s free?,” is what greets one when he or she visits Instagram’s website.
But while the service entices unassuming users (Oh yes, they go by the millions!) into providing a free interactive way of sharing moments with their networks of acquaintances, Facebook paying its biggest acquisition so far meant the service has to generate some form of revenue in return.
It has been common knowledge and has been repeated in the past, especially during Facebook’s pre-IPO that the social network’s product is its users.
“To help us deliver interesting paid or sponsored content or promotions, you agree that a business or other entity may pay us to display your username, likeness, photos (along with any associated metadata), and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you,” the new terms of service will read.
Market Reaction
But while the greater populace around the world embarked on a hostile stance against this new terms and policies, Instagram’s parent company, Facebook, was enjoying a few cents gain on NASDAQ today.
At 2:00 PM EST, Facebook shares were up 2.2% of US$0.60 to US$27.34, with over 32 million shares traded, boosted by a new collaboration with Amazon.com, despite overwhelming reaction against the controversial new terms of service and privacy policy.
