New submitter Alex Belits writes "Users of the Instagram image sharing service owned by Facebook filed a class action against Facebook for the recent change in Terms of Service." The changes that were supposed to take effect on January 16, 2013 declared for Facebook an unlimited right to use and license users' photos, added an arbitration requirement for legal disputes, and more. Guess the lawyers involved here weren't impressed enough by Facebook's hasty back-pedaling on this front; the company did explicitly disclaim ownership interest in the uploaded photos after a wave of complaints, but left in place certain other clauses in the new terms.
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