[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-ip-indemnification::en":3,"gloss-cluster-ip-indemnification::en":20,"gloss-next-ip-indemnification::en":9},{"slug":4,"category":5,"name":6,"definition":7,"meta_desc":8,"faq":9,"schema_markup":9,"related":10},"ip-indemnification","saas","IP Indemnification","Intellectual-property indemnification is the vendor's contractual promise to defend and cover a customer who gets sued for infringement arising from use of the product — legal costs, settlements, and often the obligation to fix the problem by modifying the product or securing a licence so you can keep using it. In traditional software this covered the vendor's own code: if their product infringed a patent, that was their problem to answer for, not yours. Generative AI has made this clause one of the most negotiated in the contract, because the output is now part of the product. If a model produces marketing copy, code, or an image that resembles protected material, the person who published it is the one exposed, and that person is the customer. Several major AI vendors responded by extending indemnity to cover model output, which is a meaningful commercial signal — but coverage is not uniform and the conditions attached matter more than the headline. Read for four things. Scope: does the indemnity cover output, or only the software itself? Conditions: coverage is usually void if you disabled safety filters, ignored citations or provenance features, supplied infringing material in the prompt, or modified the output in ways the vendor did not sanction. Cap interaction: indemnity is sometimes carved out above the general liability cap and sometimes squeezed underneath it, which changes its practical value enormously. And control: the vendor typically takes over the defence, which means they, not you, decide whether to settle. For any team publishing AI-generated work at volume — agencies, publishers, e-commerce catalogues — the presence and shape of this clause belongs in the evaluation, not in the legal review at the end.","IP indemnification is the vendor's promise to defend you if what its product produced is claimed to infringe someone else's rights.",null,[11,14,17],{"slug":12,"name":13},"data-processing-agreement","Data Processing Agreement (DPA)",{"slug":15,"name":16},"limitation-of-liability","Limitation of Liability",{"slug":18,"name":19},"master-service-agreement","Master Service Agreement (MSA)",[21,25,29,32,35,38,41,45,48,51,54,57],{"slug":22,"category":5,"name":23,"updated_at":24},"activation","Activation","2026-08-24T02:46:36+00:00",{"slug":26,"category":5,"name":27,"updated_at":28},"aha-moment","Aha Moment","2026-08-24T02:46:37+00:00",{"slug":30,"category":5,"name":31,"updated_at":28},"annual-contract-value","Annual Contract Value (ACV)",{"slug":33,"category":5,"name":34,"updated_at":24},"api-first","API-First",{"slug":36,"category":5,"name":37,"updated_at":24},"arpa","Average Revenue Per Account (ARPA)",{"slug":39,"category":5,"name":40,"updated_at":24},"arr","Annual Recurring Revenue (ARR)",{"slug":42,"category":5,"name":43,"updated_at":44},"auto-renewal-clause","Auto-Renewal Clause","2026-08-24T02:46:38+00:00",{"slug":46,"category":5,"name":47,"updated_at":44},"build-vs-buy","Build vs. Buy",{"slug":49,"category":5,"name":50,"updated_at":28},"burn-multiple","Burn Multiple",{"slug":52,"category":5,"name":53,"updated_at":44},"burn-rate","Burn Rate",{"slug":55,"category":5,"name":56,"updated_at":24},"cac","Customer Acquisition Cost (CAC)",{"slug":58,"category":5,"name":59,"updated_at":24},"cdn","Content Delivery Network (CDN)"]