Update: In a thread about this post at Dropbox forums, it was brought to my notice that Dropbox has now changed its terms to remove the objectionable clause.
If you use dropbox (A popular online storage service with free 2 GB space), and use (or intend to use) its public or shared folders feature, then you must know something about the EULA (End Users’ LIcense Agreement). Yes, the one that you clicked “I Agree” on, without even reading one word of. Basically, you need to know the following lines:
While you own the content contained in Your Files, you hereby grant all other Dropbox users a non-exclusive, worldwide, royalty-free, sublicensable, perpetual and irrevocable right and license to use and exploit Your Files in your public folder. In addition, you hereby grant Dropbox users who have been given access to your shared folder a non-exclusive, worldwide, royalty-free, sublicensable, perpetual and irrevocable right and license to use and exploit Your Files in your shared folder.
What this means is that anything you share with anyone through dropbox falls into almost-public domain. This includes any pics, docs, source code, etc. So, be warned and use the service with care and descrition. 
PS: I searched SpiderOak’s EULA for similar terms but it looks clean to me. Are there any other services that you know having such hidden gotchas? (Although we must admit they are not so hidden after all, but it is us who turn a blind eye towards the terms)
I am not sure I understand the concern. If you put something in a “Public” folder then of course anyone can use it as they will. And, if you give someone the authorization to a “Shared” folder then they likewise have the access “you” give them.
Sounds like they have only made the obvious point clear.
@Michael: It is not a question of “access”, it is a matter of “use”. Even if you put in a public folder, it does not automatically mean it goes into “public domain”. Take flickr, for example. You upload ur pics and it is accessible by anyone in public, but that does not mean that they can “use” it for their own purpose. This is a point that has to be known. e.g. what if you were to share ur family pics with someone through this service and then they put it on their website for sale without asking u. Is that ok with you?
Right you are but if someone does use your image on Flickr you should have no expectation that Flickr will protect or compensate you for any violation of your copyrights. It appears that Dropbox is just making this point clear.
@Michael: That’s the whole point. When you post on flickr, you do not transfer the rights to anyone, so if someone flicks ur pic, you can go after the person who flicked it yourself. But in dropbox’s case, you are essentially writing off your rights, so nothing can be done about it legally.
. Now this wouldn’t be possible in dropbox’s case. I hope that makes it clear )
BTW, since we are on topic about flickr, pic flicking and copyrights, read this: http://blog.twilightfairy.in/2008/09/01/toi-believes-flickr-is-for-flicking/
(And yes, the person in question here did get compensation and a published public apology in the end
Shantanu, actually I’m not sure this clause is valid. In most countries, giving or selling a license must be an agreement between two persons/entities. You cannot write “this is an agreement between you and me, and by this agreement you grant other persons such and such rights”. I think the whole clause is invalid and should be struck down.
I guess the Dropbox guys just tried to protect themselves, but messed up this one. There is no need for a particular license here. If I download content from someone’s Public folder on getdropbox.net, I shouldn’t get any license to do anything other than the right to use it for myself. If I redistribute the content while I don’t have the rights (through a Creative Commons license for instance, or some other agreement between me and the content owner), this is piracy. That’s how it works for content proposed by content owners anywhere on the Internet, whether on Flickr or on someone’s blog or hosting account.
Well, I guess that second paragraph is just stating the obvious.
@Florent: Thanks for the clarification. What I think is that if nothing else, this clause brings in an ambiguity that is enough to promote widespread misuse..Maybe we should ask the dropbox guys what they think about this. I’ll try to contact them. Thanks for your comment once again..
Did you get any update on this? I’ve just started using Dropbox for work and it’s a bit of a concern.
I think people are correct in thinking that this is just to cover Dropbox incase people use the public folder for sensitive files and then want to sue dropbox.
We’ll see.
The EULA is changed, but only for your SHARED FOLDERS. The text regarding your PUBLIC FOLDER remains the same. Put anything there and it’s out of your hands, for others to exploit as they see fit.
I just deleted my Public folder. Will be using Apples iDisk for that.
Other than that, DropBox is a really well executed solution.
Hey guys what about uploading already copyrighted files into tzhe shared folder …. is it illegal for example to share my favorite mp3s ???
thanks
@jose, yes it is illegal..
HELLo!
That depends entirely upon the laws in your country, their license, and possibly who you’re sharing those files with.
Happy syncin’!
I want “shared public folders” – basically I want to allow my friends to be able to make changes in the folders that I have set as available publicly. Dropbox doesn’t have this yet, but they are thinking about adding that feature. Vote it up in priority here: https://www.dropbox.com/votebox/784/share-public-folder-or-make-public-folders-out-of-shared-folders
While I am not a lawyer, I pay attention to these things, and in general, it is very difficult to sign your rights away. If you go to an amusement park – regardless of what it says on the back of your ticket – if the safety bar on the roller-coaster breaks, the park is liable. Sort of the same deal here. By simply putting a file in a publicly accessible place, you do not abdicate your ownership/copyright on that work. This is akin to saying if you put your guitar case down on park bench and take your hand off of it, you no longer own it and anyone is free to take it. Finders keepers is not the law. Copyright can be complicated, but according to established international law, no notice of ownership need be given for copyright to apply – i.e., the old line “All Rights Reserved” is implicit.