The Importance of Reading Terms of Use Agreements
If you could ask the world’s Internet users if they usually accept a terms of use agreement without reading it, just about everyone would say yes. The rest would be lawyers.
The little attention paid to these agreements was proven recently when Facebook, the explosively popular social networking site, changed its terms of use. It took weeks for anyone to notice. When they did, users were outraged by changes to ownership of content.
As this example illustrates, it’s vital to know what you are agreeing to, particularly when you are providing content or posting personal information on a website.
Since these agreements can be difficult to understand, sometimes even to the aforementioned lawyers, here are things to watch for when reading one.
Content ownership
The Facebook example has stirred new debate over who owns what on the Internet. Its changes implied that Facebook owned all user-generated content on the site, even after users cancelled their accounts.
Most sites outline ownership rights in their terms of use, but requirements vary widely.
Look for words like proprietary rights or intellectual property, an umbrella term for property rights protected under copyright, trademark, patent, trade secret, and related laws.
Carefully read these sections to see who owns the content that you post and for how long.
Liability
Owners of websites that allow users to post material may, in some circumstances, risk legal liability if users post inappropriate content.
To minimize liability, many terms of use agreements directly prohibit posting content that is defamatory, infringes on a copyright or trademark, invades privacy, or violates pornography laws.
Also, look for “indemnification requirements,” which require users to hold the site harmless for damages and litigation costs resulting from an inappropriate posting.
Changes to terms
Most terms of use give the website owner the right to change the terms without notifying users.
Time will tell whether these provisions are enforceable, but in the meantime, it’s a good idea to check the terms of use often.
Last Updated: 3/10/2009