Instagram Backtracks, Has No Plans to Sell Users' Photos
iPhone Download Blog

Instagram, which was bought by Facebook in April 2012, announced changes to its terms of use that give the photo sharing app perpetual and royalty-free rights to all images uploaded by users. Hoping to monetize from its popularity with iPhone and Android phone owners, Instagram on Monday informed millions of users of a new policy that allows it to use uploaded photos in advertisements or sponsored content without asking for consent from the owners. Following a wave of backlash, Instagram co-founder Kevin Systrom said the company is updating the new privacy policy to clarify that the company has no plans to sell users' photos or package them as advertisements.

What Else You Need To Know

  • The portion of the new terms that's causing the confusion reads: "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 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 use is slated to be effective January 16th, 2013.
  • There's no opt-out from the new policy -- users who disagree with the changes will have to delete their Instagram accounts.

Other sources

Instagram isn't innocent. They knew they'd have to make money at some point, and whether or not this was always their plan, some form of this had to have always been their plan, just like Twitter, Facebook, Google, and others before them, and no doubt others after them. - Rene Ritchie, iMore  
In my opinion, when you decide to upload pictures to a service, you will have to accept whatever terms that they have spelled out. If you don’t agree, you can close the account and move on. - Techie Lobang, Joe Teh  
Facebook's Instagram claims 'perpetual' rights to users' photos  

Facebook itself was sued by users angry that their images had been used as part of 'sponsored stories', and settled the case in June by making a $10m donation to charity.

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