I've seen plenty of overreactions over terms of use changes in the past, so I was a little skeptical of the criticism of Instagram. Until I actually read Instagram's new post-Facebook-acquisition terms of use for myself. Some excerpts from my article:

Under the new policy, Facebook claims the perpetual right to license all public Instagram photos to companies or any other organization, including for advertising purposes, which would effectively transform the Web site into the world's largest stock photo agency...
If Instagram users continue to upload photos after January 16, 2013, and subsequently delete their account after the deadline, they may have granted Facebook an irrevocable right to sell those images in perpetuity. There's no obvious language that says deleting an account terminates Facebook's rights... Google's policy, by contrast, is far narrower and does not permit the company to sell photographs uploaded through Picasa or Google+. Its policy generally tracks the soon-to-be-replaced Instagram policy by saying: "The rights you grant in this license are for the limited purpose of operating, promoting, and improving our services." Yahoo's policies service for Flickr are similar, saying the company can use the images "solely for the purpose for which such content was submitted or made available."
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