The current situation is that people can display an image hosted on flickr (and thus unaltered in any capacity, nor republished in any capacity) on their own site, providing they provide a link back to flickr. That is the use that is explicitly encouraged by the existing terms and conditions. Nothing more. It doesn't allow people to alter your images, to sell your images or even print them and give them away for free. The only thing it allows is to show a photo on an external site, as long as it's still hosted on flickr. ah that's why will show [deleted] on blog. also on dlcs - those thumbnails are being hosted still on flickr.

Stewart {staff} : Remember that there are hundreds of photo sharing sites that don't allow you to "hotlink" photos they are hosting offsite (because it is really expensive in bandwidth I thought so and in abuse mitigation huh). It was worth pointing this out in the TOS. ( permalink - near end thread 13063)

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sbpoet I think I may have realized (I know, obvious to everyone else) why I got confused about the "blog this" button -- that button is only available to logged-in Flickr members, isn't it? Must be, since you have to set up your blogs in the service. So, if you have a problem with the use a Flickr member has made of your photo, you have the Flickr help system to hand. Staff may, or may not, be able to or choose to help you.

Eric {staff] says: Here's the thing: Flickr is about photo sharing, and blogging photos is a major part of that. If you don't want photos blogged, again, make them private.We would like to enable some sort of reporting so people can find out when others blog their photos, but we do not plan to remove the blog this button. Posted 12 months ago. ( permalink )
George {staff} says: >"take the photo without the owners permission" < This appears to be the crux of the issue. The point that it's really important to understand is this: If you place a photo on an internet site, anyone who can view the photo can take it without your permission. Flickr's privacy level allows to to restrict availability of some photos to people you know. This is good.Some indication [when] someone has blogged your photo via the Blog This method is in the pipeline. That way you can keep an eye on who is taking your photos without your permission;) Of course, anyone who blogged a photo from Flickr without using the Blog This method would need to be tracked down using other means.
quas says:I do like the idea of getting a Flickrmail whenever someone blogs a photo. Since Flickr has the URL of every blog, it could place a link to the blog in the notification message. Sounds good to me.
-maybe just a little notification under "recent activity", the same as you get when someone faves an image?

http://www.flickr.com/forums/help/7398 (Dear Flickr)