Facebook's about-face over Instagram (week in review)

It didn't take Facebook long to backtrack over controversial policy changes it intended to make regarding its photo-sharing app Instagram.

A public backlash was ignited by Instagram stating that had it the perpetual right to sell users' photographs without payment or notification. Under the new policy, Facebook claimed the 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.

"Instagram is now the new iStockPhoto, except they won't have to pay you anything to use your images," one user quipped on Twitter.

Instagram soon apologized to its users, saying it would "remove" language from its legal terms that would have let it sell users' photos or use them in advertisements. In a blog post, Chief Executive Kevin Systrom said it's "our mistake that this language is confusing" and that the company is "working on updated language."

A day later, Instagram officially backpedaled on the changes, with Systrom announcing that the terms will revert to the version in place since the service launched in 2010. Systrom also denied that the company ever intended to sell users' images.

"I want to be really clear: Instagram has no intention of selling your photos, and we never did. We don't own your photos -- you do," he said.
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