Ammon News - Instagram has issued a statement acknowledging that customers interpreted the company's updated terms as saying it would sell their photos without providing compensation.

"To be clear" it is not our intention to sell your photos," said the statement signed by Kevin Systrom, co-founder of Instagram.

"Instagram users own their content and Instagram does not claim any ownership rights over your photos. Nothing about this has changed."

On Tuesday, the photo sharing service for the iOS and Android mobile services was caught in an Internet uproar after announcing a new privacy policy that appeared to give the company a royalty-free, worldwide license on images posted through the app.

The online reaction did earn the attention of the service.

After hours of irate customer reaction, the Facebook-owned app clarified its approach, saying that it would not—as users feared—sell photos or use them in advertising.

Systrom added that the company will be updating the language in the terms to "make sure this is clear".

The changes are set to take effect on January 16.

Facebook purchased Instagram for $1billion in April 2012.