I saw this tweet because Cory Doctorow retweeted it. I was shocked when I clicked on the link because the image shows police cars, not terms of service. TwitPic folks need to fix that bug, pronto.

So I went to the TwitPic website to read the terms of service, which is dated May 10, 2011 (not May 4th - so perhaps there was a change after this tweet?).

If you retain copyright (per the TOS), what are you granting TwitPic re "rights"? 

You're granting a license in exchange for the free service. 

You may think that the license arrangement goes too far, but it appears to be a license for use not a 'right to sell'. Caveat: I am not a lawyer! 

I do think the license goes to far by giving TwitPic the right to redistribute images through any media channel -- this sounds as though TwitPic could "redistribute" (sell?) your images to the NYTimes, for example.

However, by submitting Content to Twitpic, you hereby grant Twitpic a worldwide, non-exclusive, royalty-free, sublicenseable and transferable license to use, reproduce, distribute, prepare derivative works of, display, and perform the Content in connection with the Service and Twitpic's (and its successors' and affiliates') business, including without limitation for promoting and redistributing part or all of the Service (and derivative works thereof) in any media formats and through any media channels. 

Would love to see a lawyer weigh in on this and any comparisons with other TOS arrangements for free hosting (images or otherwise).