My web-app allows users to add images to their profile, either by uploading from their computer or providing a URL to the image. When a URL is provided, the user would choose between the following two options:
i) Copy the image to my server - The user does not want to be responsible for hosting the image but still want to use it in the web-app.
ii) Not copy the image and load the image every time from the URL that was provided - The user would rather host the image themself (such as a photo of the user's kids).
What is my legal responsibility with each of these two options? With i), I am transferring an image from somewhere on the net to my own server. With ii), I am using an image that is located on someone else's server in my web-app.
I am situated in Australia.