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In an interesting development to an earlier story, Facebook Inc. has announced that users of the company’s popular social networking site will have what may well be an unprecedented role in determining the Terms of Use policies governing the site. 

In a seemingly direct response to the negative backlash from Facebook users following the company’s recent attempts to revise its website policies and in an effort to promote a democratic and transparent process for developing new terms of use, company founder and CEO Mark Zuckerberg today announced that two Facebook Groups have been created by Facebook Inc. to enable a "town-hall" forum to permit users to offer feedback on two proposed policies:

1. The Facebook Principles, which define user rights while utilizing the social networking service and which will serve as the underlying policy prior to the implementation of  further applications, policies, etc. by the Company; and
2. The Statement of Rights and Responsibilities, which will replace the existing Terms of Use

Each of these documents will be posted for a month-long comment period closing at 12:01 am PDT on March 29 within which time Facebook Inc. Subsequent to that date, Facebook has indicated that they will republish the two policies along with revisions and comments in response to user feedback. 

Anyone utilizing the website or simply interested in the issues of privacy, copyright and technology law  in the context of user-generated online social networking sites is encouraged to visit the Facebook blog.

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A recent Internet controversy concerning the successful social networking site Facebook highlights the challenges in amending website Terms and Conditions following changes to the web site's Terms of Service have resulted in numerous challenges, questions, and protest groups users over the ownership of user-generated content. 

In a story which broke on the consumer rights advocacy blog, Consumerist.com , Facebook Inc. attempted to clarify its Terms of of Service resulting in confusion concerning the legal implications for the new provisions, particularly where users elect to close or otherwise inactivate a user account.  Whereas both documents essentially provide for a grant of license from a user to Facebook for the use of user-generated content (i.e. photos, videos, posts, applications, etc.), the new agreement deletes a prior clause which read:

You may remove your User Content from the Site at any time.  If you choose to remove your User Content, the license granted above will automatically expire, however you acknowledge that the Company may retain archived copies of your User Content.  [emphasis added]

Effectively, the changes appeared to suggest that Facebook Inc. intended to assert ownership of user content or, at the very least a non-exclusive, perpetual license to continue to use, post and distribute such content even if a user account is closed. 

In an effort to resolve concerns over the issue, Facebook Inc.'s founder and CEO Mark Zuckerberg announced a re-introduction of the earlier agreement while stating on the corporate blog that  "[o]ur philosophy is that people own their own information and control who they share it with... When people share information on Facebook, they first need to grant Facebook a license to use that information so that we can show it to the other people they've asked us to share it with."

Generally speaking, the ownership of user-generated content will be governed by copyright protections and thus such materials are owned by their originating author unless transferred to a third party by way of assignment.  In Canada and many other countries, such a transfer must also include a waiver of moral rights which refer to rights to attribution and rights to protect the integrity of the work.  

This story certainly serves as a cautionary warning to businesses utilizing customer or user-generated content and the challenges which may result when introducing new contractual terms to an existing relationship - particularly one with a wide and online following.  For users of social networking websites this story highlights the need to closely reviewTerms of Use/Service and Privacy Policies in order to gain a full appreciation for the impact of such provisions on your existing legal rights.

 *Facebook and the Facebook Logo are trademarks of Facebook Inc.

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