I see that Adobe has now chosen to change their Terms and Conditions. Good thing. The relevant area now reads better (It’s copied below.) They reserve the rights to use your photos for any purpose (except for profit) while you have them as publically accessable on their site. So, make your photos private while they’re on the site to protect some of your rights, but not all.
The situation has improved, but not been resolved completely. I guess this is simply a case of another company setting up a “free photo space” for the purpose of getting access to millions of photos free. Will a company ever pay for a photo ever again?
I would still encourage users to not store photos on their site. Use the service for editing your photos as required, but pull them off-line afterwords.
6. Use of Your Content
This section hereby replaces Section 8(a) ( ?Use of Your Content ?) of the General Terms.
1. By Adobe
Adobe does not claim ownership of Your Content. However, we do need certain rights from you, with respect to Your Content, in order to operate the Service and in order to enable you to do all the things this Service affords you the ability to do. Therefore, with respect to Your Content, you grant Adobe a worldwide (because the internet is global), royalty-free (meaning we do not owe you any money), nonexclusive (meaning you are free to license Your Content to others) fully sublicensable (so that we can permit our affiliates, subcontractors and agents to deliver the Service on our behalf) license to use, reproduce and modify Your Content solely for the purposes of operating the Service and enabling your use of the Service. With respect to Your Shared Content, you additionally grant Adobe the rights to distribute, publicly perform and publicly display Your Shared Content (in whole or in part) for the sole purposes of operating the Service and enabling your use of the Service and to sublicense Your Shared Content to Other Users subject to the limitations of Section 7 below. These limited licenses do not grant Adobe the right to sell or otherwise license Your Content or Your Shared Content on a stand alone basis. Further, you may terminate Adobe ?s right to distribute, publicly perform and publicly display Your Shared Content by making it no longer shared. You may terminate the remainder of Adobe ?s rights by removing Your Content from the Service. (Detailed instructions on how to do these things can be found at http://www.adobe.com/cfusion/webforums/forum/messageview.cfm?forumid=74& catid=684&threadid=1351324&enterthread=y). Upon removal of Your Content from the Service or upon making Your Shared Content no longer shared, Adobe shall have a reasonable time to cease use, distribution and/or display of Your Content. However, you acknowledge and agree that Adobe shall have the right to keep archived copies of Your Content.