On the other hand, I work with lawyers specialising in Internet law as part of the day job. Now, ask 5 lawyers what they think and you'll get 5 different opinions, but as a general rule the consensus over the many years I've been involved in the Internet business is this:
If you actively manage the content - i.e. say 'we will search for and remove copyright images' - then you are taking responsibility for that content, and if someone finds an image you missed you may be held liable in court for not removing it.
If you do not actively manage the content, but provide a mechanism to remove images which are reported, then you have a defence in court that you did not, and in practice cannot, claim to take responsibility for that content, and the liability rests with the person who uploaded the content, not yourself.
In practice, if you go the fully moderated "I'll make sure only legit images are uploaded" route then trust me on this - no insurer will touch you for insuring your legal liability. This fact alone tends to mandate the latter approach.
I think you're overstating the amount of pirated content on Flickr anyway. QUOTE]
I'm sure you're right, which is why I am still surprised flickr does not cover itself by saying "It is absolutely forbidden to upload material which is someone else's copyright, and if we become aware of any such material, we'll remove it immediately". To my mind, this would place the onus to respect copyright on the clients rather than the owners in the way you suggest but would not imply (as I think the present wording does) that flickr will tolerate pirated material up to a certain degree. And just to be clear - I'm not stating the amount of pirated content on flickr, I'm taking a wild guess, simply to illustrate the point that, even if the amount was very small indeed, potential damages could be ruinous. If I saw one of my images on flickr and no one seemed to be making money out of it, I probably wouldn't get too excited, but if images were pirated to which the rights are held by the likes of Corbis or another big picture library, I think the organic fertiliser could easily interface with the rotary cooling system

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Regards.
David