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Basically its a multimedia hosting service, a quick place for people to upload music , videos , and pictures and have them hosted for free.
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I think this is where he gets the idea much of the material will be without needed paperwork or copyrights... would you also provide a service to the hosting companies to weed out material that shouldn't be posted? This would be even more important with the newer 2257 rules, potentially the image host could become a secondary producer (because the original poster would be unknown, and they would own the domain).
Please, elaborate for the class.