We thought this story was interesting because it has a strong intellectual property aspect, not to mention implications for celebrities and creative professionals. Therefore, it may be of special relevance here in Los Angeles.
In effect, Instagram is asking users to give up their copyright protections, which affix automatically when a user takes a photo. (Remember that certain copyright protections attach automatically as soon as an "author" commits an expression of an idea into a fixed medium).
Some celebrities have also questioned if this service will be used to imply endorsements. If a passerby notices Taylor Swift coming out of a coffee shop and takes a snapshot, for example, could that coffee shop buy the image and publicize it, thus implying that Swift endorses it?
Many professional photographers are also against the policy because they believe that creative professionals deserve to have their permission asked and be compensated for use of their work.
Source: CNN, "Instagram users revolt over privacy changes," Doug Gross, Dec. 18, 2012