
A debate is raging among artisan sellers over the Terms of Use agreements of Etsy and Amazon, which will soon launch the Handmade at Amazon marketplace. Should sellers be worried that marketplaces could turn around and compete with them?
Excerpt from Etsy's TOU:
By posting Your Content, you grant Etsy a non-exclusive, worldwide, royalty-free, irrevocable, sub-licensable, perpetual license to use, display, edit, modify, reproduce, distribute, store, and prepare derivative works of Your Content to provide the Services and to promote Etsy, your Etsy shop, or the Services in general, in any formats and through any channels, including across any Etsy Services or third-party website or advertising medium.
Excerpt from Amazon's TOU:
If you submit material, and unless we indicate otherwise, you grant Amazon a nonexclusive, royalty-free, perpetual, irrevocable, and fully sublicensable right to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, and display such content throughout the world in any media. You grant Amazon and its sublicensees the right to use the name that you submit in connection with such content, if they choose.
Sellers are very worried that Etsy and/or Amazon could be granting themselves the right to their designs and products and turn around and compete with sellers.
The same types of concerns have come up with eBay sellers over the years - in 2013, for example, Brian Cohen noted on the
AuctionBytes Blog that eBay grants itself the right to sublicense any content a seller submits. He pointed out a third-party research tool that licenses seller product images from eBay and reproduces them in its own database.
Etsy also grants itself the right to sublicense users "content" in
its terms of use.
While Amazon has a similar provision but uses the term "materials" rather than "content" in its
terms of use.
See more about this issue in Wednesday's
Newsflash newsletter, and let us know what you think. Do Etsy and Amazon overreach in their terms when it comes to licensing provisions? Is one user agreement better or worse than the other?