Upload & Sell: On
Do they just do it on your we probably won't get sued theory ?
Just for clarity ... I'm not suggesting any propriety in this ... just that the "catch me if you can" and "it's too much hassle" (et al) approaches have longstanding history in conjunction with strong-arm tactics. Thus, it wouldn't surprise me if that is factored in.
We've seen similar many times in the smaller arenas, where the penalty of "take down" served as no deterrent to perpetuating violations. If FB isn't concerned with the magnitude of the possible deterrent, then it doesn't serve as much of one ... until it is actually executed, and proven that they should be.
Getting caught with your hand in the cookie jar and only having to say "I'm sorry" isn't much of a deterrent.
+1 @ potential licensee not wanting it "looming" over their head, expecting FB to be a provider of indemnification included. But, not all markets are so concerned ... likely some willing to "roll the dice" until they get caught, then they can feign ignorance, claiming it to be FB responsibility , etc.
Time will tell ... we'll see it/how this plays out.
I really wasn't speaking to the propriety of FB trying to do this as to becoming another Getty. Just mostly the fact that the masses (i.e. not us) largely don't ever pay attention to their TOS that FB has ... and it comes as no surprise that FB would now strive for similar with Instagram.
Whether or not FB / Instagram can / will do much with it ... yet to be seen ... but it won't be with my images.