So they're revising their service agreement to make it clear exactly what is and isn't allowed and remove the offensive bits. The same thing happened with Pinterest a few months ago, where their service agreement was amended to state that they had intellectual property rights to everything that their users pinned. Which is ridiculous, since people are pinning things images that don't even belong to them in the first place. Of course, they had to backtrack on it in a matter of hours and blame it on their lawyers.
Honestly, any company that attempts to claim property-rights over user-posted images is asking for trouble, because they'll never be able to verify that the person posting it had intellectual property rights over it in the first place.
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