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Read it more carefully
I'm one of the founders of Writely, which became Google Docs. I don't think your reading of the terms of service is correct.

As we state in our terms of service, we don't claim ownership or control over your content in Google Docs & Spreadsheets, whether you're using it as an individual or through Google Apps. Read in its entirety, the sentence from our terms of service excerpted in the blog ensures that, for documents you expressly choose to share with others, we have the proper license to display those documents to the selected users and format documents properly for different displays. To be clear, Google will not use your documents beyond the scope that you and you alone control. Your fantasy football spreadsheets are not going to end up shared with the world unless you want them to be.
Posted by: schillace   Posted on: 08/28/07 You are currently: a Guest | Members login | Terms of Use

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Horrible  cyngaines | 08/28/07
inconsistencies  dahowlett@... ZDNet Moderator | 08/28/07
could be worded better but...  jwalkernet | 08/28/07
Follow the Grqammar  josh@... | 08/29/07
Josh, show me a vendor contract...  vmirchan | 08/28/07
Vendor Contract Don't Claim Rights to Customers Data  josh@... | 08/29/07
Read it more carefully  schillace | 08/28/07
Not the point  dahowlett@... ZDNet Moderator | 08/28/07
See my grammatical posting above  josh@... | 08/29/07
You're not on solid ground here  ers | 08/29/07
100 people  josh@... | 08/29/07
Evil empire?  Mike At VMI | 08/29/07
Hoo-wee, I didn't even see this part...  Mike At VMI | 08/29/07
public versus private  josh@... | 08/29/07
I don't think so.  Mike At VMI | 08/30/07
Like, Oh My God!  tbannister | 08/29/07
please read the column again  josh@... | 08/29/07
Web 2 means you write, they own.  kruse@... | 08/30/07
This is standard  T1Oracle | 09/02/07
Does my post belong...  Bozzer | 09/02/07
I seem to remember...  MGP2 | 09/03/07
Any security dude/dudette will tell you...  adam.prall@... | 09/07/07
How many Terms and Conditions does it take to Google?  SentryWatch | 09/20/07
You are way overreacting: The Content in Google Apps Belongs to Google  borlowitz@... | 04/11/08

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