It's precisely what the legalese means, and carries connotations which are absolutely nothing like what Imgur intends. They claim unlimited rights not because they don't want to be bothered to restrict them, but because the structure of the Internet makes it impossible to write a simple description of when copies will be made.
They could try going into detail:
> We can send copies of your image to anyone who, following standard Internet routing protocols, says that someone has requested to see the image and promises to forward the copy onwards to the original requester. Anyone we send the image to can also create copies themselves following this rule, and can temporarily store the copies as needed to make further copies.
But then neither the average Joe nor lawyers are going to be able to understand it.
> which are absolutely nothing like what Imgur intends
But how do we know this? If they intend something, they should write that down in the contract. I am having hard time imagining that their lawyers cannot draw a contract which waives only the copyright requirement for the purposes of image hosting and restricts the images from being used for other things. The principle of charitable interpretation tells me to believe what people/company write in their contract. In my opinion, the expansive definition in the contract is there to
a) Save their ass when they do something which does not seems kosher to the public.
b) Allows them to pivot to other use of the data which might have nothing related to their current business model.
c) It is cost effective to draw up the contract in this way, given the current legal system and its requirements.
Note that I am not saying that Imgur is doing something immoral or whatever. I am just saying that if they wrote down this
> When you upload pictures, you have to give us the right to make as many copies of the pictures as we want, modify them however we'd like, and send those copies to whoever we want anywhere in the world.
as the simplified legalese, that it is the current interpretation. I contend that the average Joe will have better understanding of the _current_ contract with the simplified statement. I also think that Imgur (and other services) will find money to draft a better contract if they were required to make a simplified language version.
Again, it'd definitely be possible to write a document more narrowly describing what they need a license to do. But that doesn't solve the problem. The updated version would be more readable for network engineers, less readable for lawyers, and still incomprehensible to the average person who just wants to upload a meme.
"Hi. When you upload an image to imgur, we need the legal right to distribute it to other people. We also process your image to look right on different devices, which requires the legal right to modify your image. We promise not to distribute or modify your image beyond what we do here at imgur.com, and won't sell it to other people"
I agree with you. Though I do think that this is not an unsolvable problem with the right incentives. As I noted, the people at company X might be the best people at heart, but the current legal system does not encourages drafting of a contract that precisely (and easily) describes the terms being agreed between the two parties. This is not even a unique feature of contract law, the same to true to various extend for all branches of the law.
My gut feeling (of which I have no proof) is that the current legal system is costing more money to the society than is necessary. For one thing, it is decreasing the trust in the legal system, since people now (correctly) assume that in many facets of modern life, they are agreeing to things they don't understand, that they are giving up more rights than they should, and that there is no reasonable solution to this problem yet.
Some complication in the law is necessary since the world is a complex creature, but I think that the common person (say at least half of the population) should have reasonable understanding of the legal language. One way to approach it is to have a requirement for simpler contract, but I don't know if it is _the_ way to deal with this problem. I am not a lawyer after all. All I know is that something is broken, and if not fixed, will lead to more problem down the line. A system like this where no-one trusts nobody is clearly not sustainable. It's just not a good way to organize as a society.
They could try going into detail:
> We can send copies of your image to anyone who, following standard Internet routing protocols, says that someone has requested to see the image and promises to forward the copy onwards to the original requester. Anyone we send the image to can also create copies themselves following this rule, and can temporarily store the copies as needed to make further copies.
But then neither the average Joe nor lawyers are going to be able to understand it.