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As an update, people with better understanding of legalese than I possess have read the changes somewhat differently.
The good news: As written, the new language does NOT give them the right to sell your photos willy nilly and is actually slightly MORE restrictive in terms of what your photos can be usded for than before.
The bad news: The old language was actually ALREADY pretty permissive, allowing advertise a fair bit of leeway in using your photos (the way FB already allows, where advertisers can plop your photo into ads on the site).
The remains-to-be-seen news: Instagram has released a statement saying they are taking the reaction into consideration and working to clarify the language.
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'He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me.'
-TJ
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