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Yup, it's in their TOS, gotta make sure you comply before they come after you.

I think it would be a good idea for XenForo to send out a mass email to users that upgraded to 1.3 to make sure they comply with this, a lot of people are using custom templates.

Or have XenForo release an update that changes the folder where the images are being pulled from, I'm sure Mike & Kier could fix this easily for future versions. I think it's pretty important that everyone knows before having repercussions.