Both you and Atlassian agree to defend and compensate each other if a third party brings a legal claim resulting from the other party's breach of this agreement.
This analysis describes what Atlassian's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The mutual indemnification structure means that customers may be required to indemnify Atlassian against third-party claims arising from the customer's breach or misuse of the products, which could create financial exposure in the event of a significant incident.
Interpretive note: The precise triggering conditions for customer indemnification obligations depend on agreement language that may not be fully detailed in the base document; the full indemnification section should be reviewed in context.
If your organization's use of Atlassian products leads to a third-party legal claim against Atlassian, this provision requires your organization to defend Atlassian and cover resulting damages and legal fees, subject to the conditions stated in the agreement.
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"Each party will defend the other party against any third-party claim arising from the indemnifying party's breach of this Agreement, and will indemnify and hold harmless the indemnified party from any damages, costs, and fees (including reasonable attorneys' fees) finally awarded against the indemnified party as a result of such claim.— Excerpt from Atlassian's Atlassian Cloud Terms
REGULATORY LANDSCAPE: Mutual indemnification clauses are standard in commercial SaaS agreements and do not directly engage a specific regulatory framework, though the scope of the indemnification obligation may interact with insurance requirements and risk allocation frameworks applicable to regulated industries. GOVERNANCE EXPOSURE: Medium. The customer indemnification obligation may be triggered by user conduct, data submitted by the customer, or third-party intellectual property claims arising from customer use. Organizations with large user bases or sensitive data workflows face elevated exposure. JURISDICTION FLAGS: The enforceability and scope of indemnification clauses may vary by jurisdiction. In the UK, indemnification provisions must satisfy reasonableness requirements under applicable contract law. EU jurisdictions may impose additional constraints on indemnification for consumer-facing entities. CONTRACT AND VENDOR IMPLICATIONS: Procurement and legal teams should confirm that the indemnification obligations are covered by the organization's commercial general liability and cyber liability insurance policies. The scope of customer indemnification should be reviewed against acceptable use and access control policies to minimize triggering events. COMPLIANCE CONSIDERATIONS: Legal teams should document the indemnification provision in vendor risk registers and ensure that internal acceptable use policies are sufficient to reduce the likelihood of a triggering event.
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The mutual indemnification structure means that customers may be required to indemnify Atlassian against third-party claims arising from the customer's breach or misuse of the products, which could create financial exposure in the event of a significant incident.
If your organization's use of Atlassian products leads to a third-party legal claim against Atlassian, this provision requires your organization to defend Atlassian and cover resulting damages and legal fees, subject to the conditions stated in the agreement.
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