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OSP’S & OWNERSHIP OF USER-
CREATED CONTENT
The Facebook T.O.S. Scandal
Lara M. Ali
MBAA 609, Spring 2009
FACEBOOK

  Online Service Provider (OSP)


 Social Networking Site that enables users to create
  personal profiles and publish various types of
  content
      Public profiles viewable by everyone
    
     Private profiles viewable by restricted audience, which
      user selects
  175 million users


 Similar sites: Myspace, LinkedIn, Twitter
FACEBOOK’S NEW TOS
    February 4th, 2009 – Facebook changed its Terms

    of Service.




    It excluded previous language about the perpetuity

    of user created content on its site.
FACEBOOK TOS - BACKLASH
    Online blog “The Consumerist” noticed the quiet

    change and launched a massive, Internet-wide
    uproar against the new Terms
      Next morning, EPIC filed a formal 25-page complaint
    
      with the Federal Trade Commission
     Facebook Group was created the same day – “People
      Against The New Terms of Service” – and was 90,000
      members strong within hours
  Two days later, Facebook reverted back to old TOS

  in response to the uproar
 So, what was everyone complaining about?
FACEBOOK TOS – WHAT’S THE PROBLEM?
  New TOS no longer promised that the use of

  member content would “expire” once the user
  deleted his/her account.
 Online community interpreted this to mean that
  Facebook owns user’s personal information –
  photos, music, emails- and can use it without
  permission, for its own gain, forever.
 This causes two specific ethical problems:
      Invasion of Privacy
    
     Copyright Infringement
ONLINE SERVICE PROVIDERS – ETHICAL
ISSUES
           PRIVACY   COPYRIGHT INFRINGEMENT

    Emails               Intellectual Property is not
                    
                         very well protected Online
    Photographs

                         Publishers of creative content
                     
    Blogs

                         can be harmed b/c OSP can
    Status updates

                         profit from use of their
    Music
                        music/writing/art/etc.
    Videos
                        “Non-exclusive” licensing
                     
CURRENT OSP LANDSCAPE – COPYRIGHT
ISSUES
  Most OSP’s Terms of Service focus heavily on

  copyright concerns.
 “Non-exclusive” licenses
      OSP does not have “exclusive” ownership of user
    
      content
     But can still re-use it or keep it in public distribution

    But these licenses limit the scope of the OSP’s use

    of content – only things in connection with the
    normal services it provides
CURRENT OSP LANDSCAPE – PERPETUAL
LICENSES
    Most service providers claim perpetual use of

    content
        Google & Yahoo! Have perpetual licenses to non-
    
        pictorial content
    Claim they need perpetual use of content like

    emails, photographs and videos because of
    Copyright Law
        Ex.) Email - Without a non-exclusive perpetual license,
    
        after a user has deleted account, Facebook would have
        to go into other users’ inboxes to delete every email that
        user has sent – time consuming, impossible.
WEB 3.0 – ETHICAL DANGERS
    Web 2.0 is successful because sites like Facebook

    allow users to create their own custom service for
    FREE.
        Others like Google, Craigslist, Twitter, LinkedIn & Picasa
    
        have this same model
    Web 3.0 is where ethical missteps can happen.

      MONETIZING millions of users who have grown
    
      accustomed to free online experiences
     The reason for the Facebook TOS change is so that FB
      could PROFIT from users by using their content.
     Other OSP’s will continue to find ways to do this that
      may be underhanded.
CONCLUSION
  OSP’s user base continues to grow and their need

  to profit from these users will trump ethical
  obligations
 Terms of Service are written with the ultimate goal
  of protecting the OSP, but there are many grey
  areas that will cause legal/ethical dilemmas
 Today’s legal environment does not clearly
  delineate the rules of the game for IP on the Web
 FB scandal will happen again and again until laws
  preclude them in the future

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OSP’s & Ownership Of User Created Content

  • 1. OSP’S & OWNERSHIP OF USER- CREATED CONTENT The Facebook T.O.S. Scandal Lara M. Ali MBAA 609, Spring 2009
  • 2. FACEBOOK Online Service Provider (OSP)   Social Networking Site that enables users to create personal profiles and publish various types of content Public profiles viewable by everyone   Private profiles viewable by restricted audience, which user selects 175 million users   Similar sites: Myspace, LinkedIn, Twitter
  • 3. FACEBOOK’S NEW TOS February 4th, 2009 – Facebook changed its Terms  of Service. It excluded previous language about the perpetuity  of user created content on its site.
  • 4. FACEBOOK TOS - BACKLASH Online blog “The Consumerist” noticed the quiet  change and launched a massive, Internet-wide uproar against the new Terms Next morning, EPIC filed a formal 25-page complaint  with the Federal Trade Commission  Facebook Group was created the same day – “People Against The New Terms of Service” – and was 90,000 members strong within hours Two days later, Facebook reverted back to old TOS  in response to the uproar  So, what was everyone complaining about?
  • 5. FACEBOOK TOS – WHAT’S THE PROBLEM? New TOS no longer promised that the use of  member content would “expire” once the user deleted his/her account.  Online community interpreted this to mean that Facebook owns user’s personal information – photos, music, emails- and can use it without permission, for its own gain, forever.  This causes two specific ethical problems: Invasion of Privacy   Copyright Infringement
  • 6. ONLINE SERVICE PROVIDERS – ETHICAL ISSUES PRIVACY COPYRIGHT INFRINGEMENT Emails Intellectual Property is not   very well protected Online Photographs  Publishers of creative content  Blogs  can be harmed b/c OSP can Status updates  profit from use of their Music  music/writing/art/etc. Videos  “Non-exclusive” licensing 
  • 7. CURRENT OSP LANDSCAPE – COPYRIGHT ISSUES Most OSP’s Terms of Service focus heavily on  copyright concerns.  “Non-exclusive” licenses OSP does not have “exclusive” ownership of user  content  But can still re-use it or keep it in public distribution But these licenses limit the scope of the OSP’s use  of content – only things in connection with the normal services it provides
  • 8. CURRENT OSP LANDSCAPE – PERPETUAL LICENSES Most service providers claim perpetual use of  content Google & Yahoo! Have perpetual licenses to non-  pictorial content Claim they need perpetual use of content like  emails, photographs and videos because of Copyright Law Ex.) Email - Without a non-exclusive perpetual license,  after a user has deleted account, Facebook would have to go into other users’ inboxes to delete every email that user has sent – time consuming, impossible.
  • 9. WEB 3.0 – ETHICAL DANGERS Web 2.0 is successful because sites like Facebook  allow users to create their own custom service for FREE. Others like Google, Craigslist, Twitter, LinkedIn & Picasa  have this same model Web 3.0 is where ethical missteps can happen.  MONETIZING millions of users who have grown  accustomed to free online experiences  The reason for the Facebook TOS change is so that FB could PROFIT from users by using their content.  Other OSP’s will continue to find ways to do this that may be underhanded.
  • 10. CONCLUSION OSP’s user base continues to grow and their need  to profit from these users will trump ethical obligations  Terms of Service are written with the ultimate goal of protecting the OSP, but there are many grey areas that will cause legal/ethical dilemmas  Today’s legal environment does not clearly delineate the rules of the game for IP on the Web  FB scandal will happen again and again until laws preclude them in the future