Compare indemnification governance provisions between OpenAI and Anthropic. Provisions are extracted from monitored governance documents and classified by severity.
This indemnification clause allocates risk by establishing that users bear financial and legal responsibility for defending OpenAI against third-party claims connected to user conduct or user-created content. The provision applies broadly to claims arising from Terms violations, service misuse, or third-party intellectual property or rights violations.
Consumer impact
Users assume an obligation to cover OpenAI's legal costs, settlement amounts, and damages related to third-party claims involving the user's actions, content, or outputs generated through the Services. This obligation extends to claims involving products or services users develop using OpenAI's Services and claims by third parties alleging rights violations.
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Actual clause text
You will defend, indemnify, and hold harmless OpenAI and our affiliates, and our and their respective officers, directors, employees, agents, successors, and assigns from and against any claims, liabilities, damages, judgments, awards, losses, costs, expenses, and fees (including reasonable attorneys' fees) arising out of or relating to your violation of these Terms or your use of the Services, including your Input, any products or services you develop using the Services, or your violation of any third party's rights.
AI-extracted from source document. Verify against original for legal use.
This provision allocates intellectual property risk between Anthropic and customers by establishing Anthropic's defense obligation for core authorized use while carving out categories where customers bear the risk exposure. The scope and limitations of indemnification directly affect each party's cost exposure for third-party IP disputes.
Consumer impact
Customers receive IP indemnification coverage for claims arising from compliant use of Services and generated outputs, but this coverage excludes claims tied to customer modifications, integrations with third-party systems, customer-provided data, or commercial trademark use of outputs. Customers remain liable for claims in these excluded categories.
Opt-out available
No opt-out available
Actual clause text
Anthropic will defend Customer and its personnel, successors, and assigns from and against any Customer Claim (as defined below) and indemnify them for any judgment that a court of competent jurisdiction grants a third party on such Customer Claim or that an arbitrator awards a third party under any Anthropic-approved settlement of such Customer Claim. "Customer Claim" means a third-party claim, suit, or proceeding alleging that Customer's paid use of the Services (which includes data Anthropic has used to train a model that is part of the Services) in accordance with these Terms or Outputs generated through such authorized use violates any third-party intellectual property right. Additionally, Anthropic's defense and indemnification obligations will not apply to the extent the Customer Claim arises from: (a) modifications made by Customer to the Services or Outputs; (b) the combination of the Services or Outputs with technology or content not provided by Anthropic; (c) Inputs or other data provided by Customer; (d) use of the Services or Outputs in a manner that Customer knows or reasonably should know violates or infringes the rights of others; (e) the practice of a patented invention contained in an Output; or (f) an alleged violation of trademark based on use of an Output in trade or commerce.
AI-extracted from source document. Verify against original for legal use.
The Department of Defense designated Anthropic a supply chain risk after the company refused to rem…
AI Difference AnalysisProfessional
Stripe's arbitration clause is narrower than Amazon's in one key respect: it includes a small claims court carve-out that Amazon's clause does not. PayPal's clause is the most aggressive of the three, explicitly waiving jury trial rights in addition to class action rights. From a compliance perspective, Amazon presents the lowest risk for B2B contracts while PayPal creates the highest exposure for consumer-facing applications subject to CFPB oversight.