The Ninth Circuit has ruled in favor of Instagram in a case regarding embedded images. The court held that the "Server Test" protects Instagram from copyright infringement liability for images shared using its embedding API. The plaintiffs argued that Instagram should be held secondarily liable for copyright infringement. However, the court found no error in the district court's decision to dismiss the case. Other courts have disagreed with the Ninth Circuit's application of the Server Test.
https://www.thefashionlaw.com/ninth-circuit-sides-with-instagram-in-copyright-case-over-embedded-images/
https://www.thefashionlaw.com/ninth-circuit-sides-with-instagram-in-copyright-case-over-embedded-images/