Rumors have been spreading around Facebook that since it is now a publicly traded entity, any information you post on Facebook can be infringed upon by anyone. The rumors continue that in order to protect yourself, you have to post a public declaration claiming your rights to your content.
Needless to say, these rumors are false. We decided to share some basic legal concepts to help you understand your relationship with Facebook.
- What does it mean to be a publicly traded company?
“Going public” is a term of art meaning that a company’s stock is bought and sold on a public exchange (such as the New York Stock Exchange, for example). This only affects the way the ownership of the company is held (and also brings many regulatory and legal burdens). However, it does not change the nature of the substantive business of the company. Since Facebook is now publicly traded, Facebook will now have to make several disclosures to the SEC and file quarterly and annual reports. It will also have to hold annual shareholder meetings and (in theory) anyone who owns a share has a vote. The manner in which the Facebook social media website operates is essentially unaffected.
- Does the legal [sounding] declaration in my Facebook status have any teeth?
- Who owns the rights to the intellectual property (photos, quirky statuses, notes, clever memes) I post on Facebook?
So, what does Facebook get out of your content? They get the following: “a non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use any IP content that you post on or in connection with Facebook.” That’s a mouthful. This means Facebook can use any of your intellectual property (photos, text, etc.) however it wants for free AND if it wants, it can tranfser this right to a third party or even license other third parties to use it. Ironically, Facebook may sell a license to this very article to a third party. In our house analogy, this means that you own the house, but Facebook can come and go as it pleases and maybe crash with some friends and then you have to get up early to make breakfast for everyone. Okay, maybe that’s taking our analogy too far…
Does it sound like Facebook pretty much owns your intellectual property? Well don’t worry too much. You are still the owner and as owner you can terminate this broad license to Facebook by simply deleting the content from Facebook or deleting your account. Keep in mind that if you shared your status with your 9000 friends and then deleted your account, it may be still be floating around Facebook and subject to the license.
READ the agreements you enter into!!!
Happy Facebooking Everyone!