Many companies are struggling with how to treat user-generated content on websites. Facebook, the social networking site that allows users to
post their own content, quietly deleted "If you choose to remove your User Content, the license granted above will automatically expire" from its
terms of use a couple of weeks ago. The deletion essentially granted Facebook a perpetual, non-exclusive license to use any content posted on the
site. This weekend, a firestorm involving tens of thousands of user protests erupted over the change. Faced with a revolt, Facebook reinstated
the clause yesterday.
This highlights the uneasy and volatile nature of posting user content to a business website; while it is advantageous to create and harness the
power of a limitless user base to create content and drive traffic, the business is not in full control of this asset. Copyright rights in
user-generated content are owned by the user/author until transferred to the business. Getting users to agree to a Terms of Use agreement
transferring the user's rights to the business is required. But, since a site's success depends upon the users' fickle goodwill, obtaining the
thousands of agreements to terms a business reasonably needs is difficult.
If you are considering adding user content driven features to your site, we recommend including a well thought out Terms of Use agreement and
Privacy Policy prior to going live, as the Facebook feedback highlights how it is often more difficult to change policies once promulgated if
your site has developed an active user community. If you have any questions concerning website policies, please call
Ashley Kirk at 210.978.7737 or
akirk@jw.com.
Additional information is also available in this article: Computers, Internet and the Web: New Legal Issues for Corporate Leadership.
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