So what could Facebook do with its members’ photos?
According to Bert Krages, “[a] derivative is any work based on a preexisting work. Any change to a preexisting [work] will create a derivative work.” In theory then, the phrasing of Facebook’s terms allow it to take any images that you’ve uploaded to the site, alter them slightly and start selling licenses for other people to use them.
So if you had uploaded a picture of a house, for example, Facebook would be able to change the color of the walls, put the image on a stock site and pocket the license fee. Facebook wouldn’t need to inform you and it certainly wouldn’t need to pay you. As for permission, you supplied that when you clicked the “agree” button on registration.
read the rest of the article.
(i'm glad i only link to my photos on Facebook. well... most of them, at least.)