AI21 Labs · AI21 Labs Terms of Use

User Indemnification Obligation

Medium severity
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What it is

If your use of AI21's services causes a legal claim against AI21, you have to pay their legal costs and any damages — not just your own.

Consumer impact (what this means for users)

If you misuse AI21's services — even accidentally — and a third party sues AI21 as a result, you are contractually obligated to cover AI21's legal fees and any resulting damages, which could far exceed what you paid for the service.

Cross-platform context

See how other platforms handle User Indemnification Obligation and similar clauses.

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Why it matters (compliance & risk perspective)

This indemnification obligation means you could be personally financially responsible for AI21's legal defense costs and damages if a third party sues AI21 because of how you used their services, which could be substantial.

View original clause language
You agree to indemnify, defend, and hold harmless AI21 and its officers, directors, employees, agents, licensors, and service providers from and against any claims, liabilities, damages, judgments, awards, losses, costs, expenses, or fees (including reasonable attorneys' fees) arising out of or relating to your violation of these Terms or your use of the Services.

Institutional analysis (Compliance & legal intelligence)

(1) REGULATORY FRAMEWORK: Indemnification clauses are governed by state contract law. In EU consumer contracts, broad indemnification clauses may be unenforceable as unfair terms under Directive 93/13/EEC. UK Consumer Rights Act 2015 similarly restricts indemnification obligations imposed on consumers. For B2B contracts, such clauses are generally enforceable but subject to reasonableness requirements in some jurisdictions (UK Unfair Contract Terms Act 1977). (2)

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Applicable agencies

  • FTC
    The FTC may review broad consumer indemnification obligations as unfair or deceptive practices under FTC Act Section 5 where they impose disproportionate risk on consumers.
    File a complaint →
  • State AG
    State Attorneys General may challenge disproportionate indemnification clauses in consumer contracts as unconscionable under state consumer protection statutes.
    File a complaint →

Provision details

Document information
Document
AI21 Labs Terms of Use
Entity
AI21 Labs
Document last updated
April 29, 2026
Tracking information
First tracked
April 30, 2026
Last verified
April 30, 2026
Record ID
CA-P-004128
Document ID
CA-D-00461
Evidence Provenance
Source URL
Wayback Machine
SHA-256
200410fbfe8d45547f3fd75da4be775c9976bd30375ad7c5fc3b502d2ae35721
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: AI21 Labs | Document: AI21 Labs Terms of Use | Record: CA-P-004128
Captured: 2026-04-30 06:20:21 UTC | SHA-256: 200410fbfe8d4554…
URL: https://conductatlas.com/platform/ai21-labs/ai21-labs-terms-of-use/user-indemnification-obligation/
Accessed: May 2, 2026
Classification
Severity
Medium
Categories

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