Pinterest’s Predicament: Legal Issues Prevent Social Media Maturity

Last week, Pinterest announced said that it was growing up.  Its blog stated, “we…know that copyright is a complicated and nuanced issue and we have knowledgeable people who are providing lots of guidance.” It next offered an opt out system by which website owners could embed code to prevent their content from being pinned.

Is Pinterest really growing up? Reading between the lines, Pinterest is claiming it does not understand copyright law, and it is waiting for others to teach it about the law. Its opt out system implicitly acknowledges that copyright owners may not like having their content taken without permission in its entirety and replicated on Pinterest’s site. Much like a child, Pinterest seems to be sidestepping responsibility for its actions.

In fact,  Pinterest seems to be stuck in adolescence. The opt out system feels like a puerile passive aggressive maneuver; Pinterest is refusing to tackle its problems directly. Its blog hints that it sees some long-term copyright consequences but prefers to value the instant gratification that comes with the recent surge in unique visitors to its site and hide behind the DMCA. The problem is that it is leaving its members exposed legally. Ideally, Pinterest would develop a model that puts its users more squarely into a fair use exception to the copyright statute.

Then, too, much like a teenager, Pinterest seems to be experimenting with its identity. Is it the underdog darling, simply providing a creative outlet to its users and an organizing tool to heavy Internet users? Or is Pinterest a blatant facilitator of copyright infringement and an accomplice to an assault on photographers and artists? Pinterest’s Terms of Use page requires members to represent and warrant that they are the copyright owners or have rights to the material they are pinning.  Obviously, members are either ignorant of or cavalierly ignoring this requirement. The Terms of Use document also disturbingly asserts that Pinterest has the right to sell member content. Such sales could put members at greater risk for copyright infringement claims, while Pinterest will seek DMCA immunity from any such claims. It seems Pinterest is trying to stretch the ethical if not actual boundaries of copyright law. Perhaps, like a rebellious teenager, Pinterest enjoys serving as a Rorschach test for society’s views on copyright law.

In the meantime, businesses are starting to take notice, hoping to convert Pinterest’s creative power into customer loyalty. In recent weeks, Mashable reported that Pinterest is a “top driver for retailers” and sports teams are “winning on Pinterest.” Indeed, these businesses are pointing the way to Pinterest’s future. At the same time, others are too uncomfortable with the legal risk. Take the Boston Business Journal. On February 17, the BBJ’s web editor posted an article entitled, “How your Business Could Get Sued for Using Pinterest.” While underscoring the creative lure of Pinterest, the article wisely pointed to the problems in Pinterest’s Terms of Use and then reported that the BBJ Pinterest boards were coming down.

Ultimately, like all children, Pinterest must mature and figure out a way to pay the rent. It has yet to make money. If it can create a lucrative model that allows its users to feel comfortable with its legalities, then Pinterest truly will have grown up.

See parts two and three  of this blog post, here and here.