The special group of people who actually read and digest terms and conditions have been getting upset about Google Drive, claiming Google's use of blanket permissions mean it can do pretty much whatever it likes with your stuff once you've thrown it up into the Google cloud.
The lines of text that are causing so much angst when combined with Google Drive's features are the two following paragraphs from the standard Google user agreement, which state:
When you upload or otherwise submit content to our Services, you give Google (and those we work with) a worldwide licence to use, host, store, reproduce, modify, create derivative works (such as those resulting from translations, adaptations or other changes that we make so that your content works better with our Services), communicate, publish, publicly perform, publicly display and distribute such content. The rights that you grant in this licence are for the limited purpose of operating, promoting and improving our Services, and to develop new ones.
This licence continues even if you stop using our Services (for example, for a business listing that you have added to Google Maps). Some Services may offer you ways to access and remove content that has been provided to that Service.
While this is no doubt a case of lawyers copying & pasting terms and conditions and trying to cover as many bases as possible, it does seem rather odd that Google's asking for permission to "reproduce, modify, create derivative works" using material you've uploaded and "publicly perform, publicly display" files.
It probably won't put all you holiday photos on the front page of Google.com, but it technically can if you've agreed to the Ts&Cs. [ZDNet]