The Real Reason Facebook Paid $19 Billion for Whatsapp

featured_money@wdd2x

Recently and very quietly Whatsapp has changed their terms of service. I was wondering why Facebook was willing to dish out that kind on money for the messaging service? Well now we know. Below is a little taste of what’s to come directly from the new TOS.

5. User Status Submissions

5B. […] by submitting the Status Submissions to WhatsApp, you hereby grant WhatsApp a worldwide, non-exclusive, royalty-free, sublicenseable and transferable license to use, reproduce, distribute, prepare derivative works of, display, and perform the Status Submissions in connection with the WhatsApp Service and WhatsApp’s (and its successor’s) business, including without limitation for promoting and redistributing part or all of the WhatsApp Service (and derivative works thereof) in any media formats and through any media channels. You also hereby grant each subscriber to your status on the WhatsApp Service a non-exclusive license to access your Status Submissions through the Service. The foregoing license granted by you terminates once you remove or delete a Status Submission from the WhatsApp Service.

So in a nut shell….we can do whatever we want with no restrictions to monetize and commercialize YOUR data.

For the full terms of service agreement click here.

Now we know why Facebook spent that kind of money. 500 million users and access to many many more. Moral of the story…  BlackBerry and BBM is the way to go.

 

  • MePiikan LzBolaz

    “by submitting the Status Submissions to WhatsApp, you hereby grant WhatsApp” famous words in a pact with the devil himself… I’m glad I only use BBM.

  • BBM is awesome. I tried WhatsApp over a year ago because a friend was on it, but quickly deleted it when I realized there was no way to separate business and personal contacts and that my status updates were available for anyone in my contacts list to see (that had WhatsApp). Thus there is no separation of work and personal life. How can people do this? I suppose it would only have utility for people who don’t use their phone for work?

    BBM is so far superior, it’s hardly comparable. Video chatting with screen share, creating private groups, voice over the internet, delivery and read receipts, sharing files, channels, etc, etc. Plus it’s the most secure messaging network in the world.

    Really impossible to compare the two.

  • nnik

    what’s up with that?

  • Anthony

    This is BlackBerry’s policy for information ownership. In a nutshell, BlackBerry is not trying to monetize your online life.


    RIM does not claim ownership of the materials you provide to RIM in any way. However, by posting, uploading, inputting, providing or submitting any such materials, you are granting RIM and any necessary sublicensees permission to use your submitted materials in connection with the operation of its business, including, without limitation, the rights to: copy, distribute, transmit, publicly display, publicly perform, reproduce, edit, translate and reformat your submitted material; and to publish your name and any contact information you approve of in connection with your submitted material. No compensation will be paid with respect to the use by RIM of your submitted material, as provided herein. RIM is under no obligation to post or use any material you may provide and RIM may remove any such material at any time in its sole discretion. (By posting, uploading, inputting, providing or submitting your material you warrant and represent that you own or otherwise control all of the rights to your material as described in this section including, without limitation, all the rights necessary for you to provide, post, upload, input or submit the material. Notwithstanding the foregoing, any suggestions, improvements or modifications to RIM products and services (“Enhancements”) made by you or anyone acting on your behalf, including your employees, will be the property of RIM without any further consideration to you, whether or not such Enhancements are incorporated into RIM products and services. Duplicated below in s. 14)


    e) Information sharing

    In accordance with this Privacy Policy, RIM may share your personal information within RIM or with our service providers. RIM may also share information with our financial, insurance, legal, accounting or other advisors that provide professional services to RIM. RIM may also share information in a manner consistent with this Privacy Policy with third parties involved in providing RIM Offerings to you including airtime service providers, authorized resellers, distributors, merchants of record or payment processors, subcontractors or entities participating in RIM’s supply or repair chains.

    In certain situations where you purchase or use a Third Party Offering (e.g. paid content subscription service, downloaded application), RIM may share certain information with the third party for purposes of providing you with the product, service or software and your information will then be subject to the third party’s privacy policy. We encourage all our users to learn about the privacy practices of such third parties before agreeing to purchase or obtain their products, services or software.

    RIM uses contractual or other means to provide a comparable level of protection while the information is being processed by our service providers. It is RIM’s policy to enter into confidentiality obligations with any third party that obtains confidential information including personal information from RIM. For example, except where RIM is required or permitted by law to disclose personal information, our service providers to whom we provide your personal information typically agree to hold the information in confidence and only use the information for the purposes for which it was provided or to comply with applicable laws.

    In the event of the sale of all or a portion of RIM’s assets, RIM may provide personal information to the third party purchaser.

    RIM may utilize third parties (e.g. advertising networks) to target advertisements at non-personally identifiable attributes or aggregated data that is derived from profile data processed by RIM, and provide such third parties with general statistics relating to the advertisements delivered. Please visit the section below on “Managing your preferences” for more information on managing marketing or commercial communications from RIM.

  • Canuckvoip

    So any picture, voice file, statement, presence notification, text, or anything at all transmitted by the use of Whatsapp is for sale. And there’s NOTHING you can do about it.
    What a piece of CRAP!
    Why do people put up with this?

  • Bastakiatavich

    Anthony, this seems invalidated now that the company name is no longer RIM. Sure it remains the same, but anything that says BlackBerry?

    Also what a load of crap WA is, why don’t they shorten the whole policy to say ‘ We do what we want with your data, HaHa, nothing you can do about it’

  • Anthony

    If BBM conversations are totally private why is this bit of text in the Privacy Policy…

    “RIM does not claim ownership of the materials you provide to RIM in any way. However, by posting, uploading, inputting, providing or submitting any such materials, you are granting RIM and any necessary sublicensees permission to use your submitted materials in connection with the operation of its business, including, without limitation, the rights to: copy, distribute, transmit, publicly display, publicly perform, reproduce, edit, translate and reformat your submitted material;”

    If BBM doesn’t scan user data what would they “copy, distribute, transmit, publicly display,…”. If it’s totally private BlackBerry should be clueless about what people are sending and talking about. There would be nothing to copy, distribute, etc. locco_smiley_27

    • CharlieHipHop

      Anthony, you’re mixing apples and oranges here. BBM’s TOS spells it out very clearly, (and it is a stark contrast to the WhatsApp terms):

      “YOUR CONTENT AND CONTENT PROVIDED BY US AND THIRD PARTIES
      (a) Your Content. This Agreement does not transfer to us any ownership of Content that You post, upload or otherwise transmit using the Services.”

      The privacy policy you’re quoting is boilerplate and refers to data that you voluntarily submit to “RIM.” The only data I have ever given them is my email address. What WhatsApp is doing is claiming ownership over the contents of messages transferred over the service.

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