http://www.ps3fanboy.com/2008/10/17/psn-terms-say-sony-can-sell-your-content-without-reimbursement/

With so much user-generated content being placed onto the PlayStation Network through Game 3.0 titles, like SingStar and LittleBigPlanet, it's unsurprising that Sony's terms of use have a clause that allows them to redistribute and use user-generated content without compensation for the original creators. "You authorize and license SCEA a royalty free and perpetual right to use, distribute, copy, modify, display, and publish your User Material for any reason without any restrictions or payments to you or any third parties."

For example, Sony could show off your latest LittleBigPlanet level in a commercial they air. Or, they may show off your amazing drunken SingStar vid in a magazine ad. Maybe they'll make money off ads that run in your private apartment in Home. There are a lot of possibilties.

However, there is one fear, as pointed out by I have the Princess. Could Sony also redistribute user-generated levels from LittleBigPlanet as paid DLC? If so, there's no entitlement for the creators to gain a single penny off of those purchases. We doubt something this drastic will happen. Instead, we still believe LBP creators might, just might, have a chance to get rich off the game.

EDIT: Do not just post links. Put up the article or write something to summarize it and add your own thoughts.

-Onyxmeth

With an imperfect legal system and taking in human nature, this legal disclosure is to protect SONY from the millions of users willing to abuse the legal system. Imagine those millions of users demanding SONY a "piece of the pie" by using a reasoning that SONY owns something to those users at the very least. Because this protects SONY from those users of abuse, SONY should out of respect, honor, and image compensate those specific users for content that SONY decides to specificly use to promote that specific related product.

EDIT: Removed the copy-and-pasted article because onyxmeth posted it.

I'd take that as a compliment if SCE put my level in a commercial or started selling it; I wouldn't care so much that they had stolen it, it'd just be really cool that they thought it was good enough to steal. =)

honestly that would be a cruel cruel thing to do! dont do it sony, thats microsofts job!

Uhm, thats pretty standard when using ANY online service (see Facebook).  Why wouldn't they want the rights to whatever is created using something they developed ?  It also prevents them from being sued for distributing the levels you make to other users on LBP. 

not only does it protect them as you say, but it allows sony to exploit the user base for free labor, much like ireport for cnn, which has already led to several scandels lawsuits and jail terms. honestly i think this might have to be rewritten, because in some states this might be viewed as against the law, nothing unusual about that though contracts are often specialised in some states 

Im sure you'd just be overjoyed to see that your LBP level was sole 12,000 x for $5 a pop and you didnt see a cent of it.

Yeah, and that why I said...

"Because this protects SONY from those users of abuse, SONY should out of respect, honor, and image compensate those specific users for content that SONY decides to specificly use to promote that specific related product."

Here at work, there is a disclaimer that anything sent via email belongs to the company.  More than likely a server issue.  If it belong to someone, that someone has the "right" to set the terms of its use.

These are basic rules for any company. Any work that you do, invention you create or innovation you bring to the table is owned by the company you used your materials in to make these things. Now, if you made these things WITHOUT using any of the company's materials, you're bound to be a pretty wealthy guy. If your work was good enough of course.

User generate content in games is a *minefield*. Its not some trivial little thing - its going to open up all sorts of wierd doors and legal issues.

This is why personally I either *play* games (play someone else's content, which I paid for), *make* games (work on my own games, in my own studio for tangible reward) - or *stuff around* in an editor (i.e. level editor in brawl), which I am happy to give to anyone for free.

There is no middle ground - I will never spend *real time* making content in games - its not supposed to be the purpose of a game in general.

...

There is also a little thing called "Copyright law" - when someone creates something, then have the rights to it. I'm not sure Sony can so easily negate this with a simple EULA. Especially when the content can easily contain other copyrighted content (scanned images, music, ...).

Going to be interesting to see what happens.