Group Nine Media Terms & Conditions: Top Legal Risks and Redline Solutions | Erayaha

## When Legal Loopholes Cost Millions: Group Nine Media’s Terms & Conditions Under the Microscope

Imagine a scenario where a single ambiguous clause in your Terms & Conditions exposes your company to multi-million dollar lawsuits, regulatory fines, or loss of intellectual property. Our analysis of Group Nine Media’s Terms & Conditions reveals several such risks—some with potential financial exposure exceeding $5 million or regulatory penalties up to 4% of annual revenue under GDPR. Here’s what every business leader and legal team should know.

1. Ambiguous User Submission Licensing: IP Ownership and Moral Rights Group Nine Media’s T&C grants itself a sweeping, irrevocable, perpetual license to user submissions, while also requiring users to waive moral rights. However, the language is overly broad and lacks specificity regarding scope, territory, and permitted uses. This ambiguity can trigger disputes over copyright, especially in jurisdictions with strong moral rights protections (e.g., EU, Canada). A single copyright lawsuit can result in statutory damages of $150,000 per work infringed in the U.S., not to mention reputational harm and litigation costs.

Legal Analysis

high Risk

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However, youYou grant (and confirm and promise to us that you have the right to grant) to us and our affiliates, representatives, sublicensees and assigns an irrevocable, perpetual, a non-exclusive, sub-licensableworldwide, royalty-free and fully-paid, license (sublicensable through multiple tiers) throughout the universe to use, distribute, syndicate, license, reproduce, modify, adapt, publish, translate, publicly perform, create derivatederivative works from, and publicly display your User Submissions (in whole or in part) in any format or medium now known or later developed; providedsolely for the purposes of operating, howeverpromoting, that our exercise of our rights underand improving the foregoing license shall at all times beServices, subject to applicable law and the limitations upon disclosure of your User Submissions imposed on us underset forth in our Privacy Notice. You hereby irrevocably waive (and agreeThis license does not require you to cause to be waived)waive any claimsnon-waivable moral rights under applicable law, and assertionsany waiver of moral rights or attributions with respectshall be limited to your User Submissionsthe extent permitted by law.

Legal Explanation

The original clause is overly broad and may conflict with non-waivable moral rights in certain jurisdictions. The revision narrows the scope, clarifies permitted uses, and ensures compliance with international copyright and moral rights standards, reducing litigation risk.

2. Privacy Compliance Gaps: Data Collection and Use The T&C references a Privacy Notice but fails to explicitly limit data collection or processing to lawful, specific purposes as required by GDPR and CCPA. This omission exposes Group Nine Media to regulatory fines—GDPR penalties can reach €20 million or 4% of annual global turnover. Without explicit language, data subjects may challenge the company’s data practices, leading to costly investigations and remediation.

Legal Analysis

critical Risk

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You agree that we mayWe will collect, process, and use anyyour personal information that we obtain about you in accordance withsolely for the provisions ofspecific purposes described in our Privacy Notice, in compliance with applicable privacy laws including GDPR and that you have no ownershipCCPA. We will not process personal data for any purpose not explicitly disclosed, and all data processing will be based on a valid legal basis such as consent or proprietarylegitimate interest in your account other than as set out in these Terms.

Legal Explanation

The original clause lacks explicit limitations on data use and fails to reference legal bases for processing, exposing the company to regulatory penalties. The revision aligns with GDPR and CCPA requirements for specificity and lawful processing.

3. Overbroad Limitation of Liability: Unenforceable Exclusions The T&C attempts to broadly disclaim liability for user submissions and third-party content, but does not carve out exceptions for gross negligence, willful misconduct, or statutory consumer rights. Courts routinely strike down such overbroad exclusions, resulting in unexpected liability. For example, a single class action over a data breach or defamation claim could result in settlements or judgments exceeding $10 million if exclusions are found unenforceable.

Legal Analysis

high Risk

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The SitesExcept as prohibited by law, their parents, partners, affiliates, subsidiaries, members, directors, officers, employees and any contract or operational providers that conduct, operate and/or manage the Sites’ Interactive Areas will and their affiliates shall not be responsibleliable for the actionactions of any visitors or third parties with respect to any information, materials or content posted, uploaded or transmitted in these Interactive Areas, except in cases of gross negligence, willful misconduct, or where liability cannot be excluded under applicable consumer protection laws.

Legal Explanation

The original clause attempts to disclaim all liability, which is unenforceable in many jurisdictions. The revision carves out exceptions for gross negligence, willful misconduct, and statutory rights, improving enforceability and reducing risk of judicial invalidation.

4. Arbitration and Class Action Waiver: Unclear Carve-Outs and Notice While the T&C mandates arbitration and waives class actions, it references exceptions but does not clearly define which disputes are excluded. This lack of clarity can render the clause unenforceable, exposing the company to class litigation. Recent U.S. Supreme Court decisions (e.g., Epic Systems Corp. v. Lewis) underscore the need for precise drafting to avoid costly procedural battles.

Legal Analysis

medium Risk

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ARBITRATION NOTICE AND CLASS ACTION WAIVER: EXCEPT FOR CERTAIN TYPES OF DISPUTES DESCRIBED IN THE ARBITRATION AGREEMENT SECTION BELOWExcept for disputes expressly excluded in the Arbitration Agreement section below (such as claims for injunctive relief or intellectual property disputes), YOU AGREE THAT DISPUTES UNDER THESE TERMS WILL BE RESOLVED BY BINDINGall disputes arising under these Terms will be resolved by binding, INDIVIDUAL ARBITRATION AND YOU WAIVE YOUR RIGHT TO PARTICIPATE IN A CLASS ACTION LAWSUIT OR CLASSindividual arbitration. The right to participate in a class action lawsuit or class-WIDE ARBITRATIONwide arbitration is expressly waived, except where such waiver is prohibited by applicable law. The Arbitration Agreement section specifies the types of disputes excluded from arbitration.

Legal Explanation

The original clause references exceptions but does not define them, creating ambiguity and potential unenforceability. The revision clarifies carve-outs and references the detailed Arbitration Agreement, aligning with recent Supreme Court guidance.

Conclusion: Proactive Redlining Prevents Catastrophic Losses Our examination shows that even well-drafted T&Cs can harbor costly loopholes. The business impact of these issues ranges from regulatory fines and litigation costs to reputational damage and lost IP rights. Proactive legal review and precise redlining are essential to safeguard your business.

Are your contracts exposing you to preventable multi-million dollar risks?
How often do you review your T&Cs for compliance with evolving regulations?
What would a single class action or regulatory investigation cost your organization?

This analysis is for educational purposes only and does not constitute legal advice. For actual legal guidance, consult with a licensed attorney. This assessment is based on publicly available information and professional legal analysis. See erayaha.ai’s terms of service for liability limitations.