Social Networks and Terms of Service Agreements. Read the Intellectual Property Clause Before Clicking Yes!

Every time we join a new social network, there is always a page or pop-up that requires us to read, acknowledge, and accept the network’s Terms of Service Agreement.  Unfortunately, most of us never take the time to read the Terms of Service Agreement.  As a result we agree to terms that we may not be comfortable with.

There are several key components of Terms of Service Agreements that all users of social networks should understand before joining a site.  They are:

1. An outline the services provided.
2. An explanation of what type of content the user can download and share on the site.
3. A statement regarding who owns content provided by the user on the site.
4. An outline of the required conduct of users of the site.
5. A requirement that users comply with applicable laws and regulations.

All of these terms are important.  However Number 3 definitely comes into play when users post original content they have created, i.e, intellectual property. As we know, intellectual property is owned by its creator. However, an owner of intellectual property can always license, sell, or transfer rights and ownership in the intellectual property.  Intellectual Property clauses in Terms of Service Agreements, usually grant the social network a royalty-free license to use the intellectual property as the site sees fit.  Social networking sites must obtain an intellectual property license from its user because if an entity uses user’s intellectual property without their permission, the user can assert a claim for infringement.

Considering the potential legal claims for infringement, all social networking sites have very extensive and iron-clad clauses regarding the sharing of intellectual property on the social network. Usually the clauses contain the following terms:

“You grant the ISP (social network) a perpetual, royalty-free (no payment) irrevocable, non-exclusive license to use, reproduce and distribute your Content within the service…….You authorize third parties to use and reproduce your content.” Second Life TOS.

In some cases the social network can use your content in any or all media for marketing and/or promotional purposes in connection with the Service. Furthermore, some Terms of Service Agreements state that any intellectual property you post on their site is 100% owned by the site! Ouch!

Usually if a user terminates the service with the social network, these clauses are no longer in effect.  But users of social networks must remember to read and understand Terms of Service Agreements before clicking your acceptance.  Crying foul after you have given up your control of your intellectual property, is not a good defense.