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First, like every other company on the web that stores user data, Instagram has always had an expansive license to use and copy your photos. It has to - that's how it runs its networks of servers around the world. And Instagram's existing terms specifically give the company the right to "place such advertising and promotions on the Instagram Services or on, about, or in conjunction with your Content." Instagram has always had the right to use your photos in ads, almost any way it wants. We could have had the exact same freakout last week, or a year ago, or the day Instagram launched.