Instagram Change in Legal Rights Results in Class Action Lawsuit

Fort Lauderdale area residents who are busy posting their holiday photos to Instagram should be aware of pending changes in subscribers’ legal rights as defined in the Terms of Use.

Instagram, the photo-sharing service owned by Facebook, is the subject of a class action lawsuit filed in California federal court late last week. The lead plaintiff alleges breach of contract, among other claims, for proposed changes to photo usage terms and a planned move to mandatory arbitration.

South Florida Instagram users may want to review their account to determine if these pending changes in legal terms will alter their plans to use the Instagram service.

Proposed Usage Right Changes for Photos Posted on Instagram

Following is an excerpt from the proposed Instagram Terms of Use scheduled to take effect on January 19, 2013:

Instagram does not claim ownership of any Content that you post on or through the Service. Instead, you hereby grant to Instagram a non-exclusive, fully paid and royalty-free, transferable, sub-licensable, worldwide license to use the Content that you post on or through the Service, subject to the Service’s Privacy Policy …

Instagram Arbitration Provision Draws Controversy

Consumers also responded negatively to a proposed new language (below) in users’ legal rights. As of January 19, 2013, Instagram wants to subject all user disputes to arbitration rather than litigation.

Except if you opt-out or for disputes relating to: (1) your or Instagram’s intellectual property … ; (2) violations of the API Terms; or (3) violations of … Basic Terms … you agree that all disputes between you and Instagram … will be resolved by binding, individual arbitration under the American Arbitration Association’s rules for arbitration of consumer-related disputes and you and Instagram hereby expressly waive trial by jury.

The lawsuit, filed in U.S. District Court for the Northern District of California, is Lucy Funes et. al. vs. Instagram Inc., 12-cv-6482.

Click on the link for Instagram proposed Terms of Use, scheduled to take effect January 19, 2013.

Click on the link to read the current Instagram Terms of Use.

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.