License of Intellectual Works in the Social Networks: Looking at the Approach of the United States and Iran

Web.2 (The second generation Internet) has created an environment named “the virtual social networks” in which the users interact with each other and produce intellectual works. In order to gain access to the network, users are unconditionally required to accept a unilateral and pre-drafted agreement named “Terms of Use agreement.” One of the most significant terms in this agreement is the non-exclusive, royalty-free and worldwide license which the user grants to the Social network provider for any commercial or non-commercial use. The main issue in this research is to determine the subject domain of the above-mentioned obscure license, its termination condition and the authenticity and enforceability of its terms based on the USA legislation as a pioneer at E-commerce and social networks as well as the strategies adopted in Iran’s E-commerce Act and intellectual Property laws. Finally this article implementing archival method with descriptive analytical approach, concludes that the terms of the agreement must be interpreted narrowly in favor of the creators (users) and may be procedurally and substantively unfair. This can lead to the invalidation of the condition and even the entire contract.