Intellectual Property and License Grant

What it is

The agreement states that Customer Data ownership remains with the Customer, but that the Customer grants HubSpot a worldwide, royalty-free license to collect, use, copy, store, transmit, modify, and create derivative works of Customer Data to the extent necessary to provide the services.

Why it matters (compliance & governance perspective)

This provision establishes the scope of HubSpot's license to use Customer Data, including the right to create derivative works, which encompasses the use of Customer Data in product improvement and aggregated analytics activities described elsewhere in the agreement. The license is scoped to service provision, but the inclusion of derivative works creation warrants review against the Customer's data governance obligations.

Consumer impact (what this means for users)

Under this clause, the Customer retains ownership of Customer Data but grants HubSpot a broad operational license including the right to create derivative works of that data to the extent necessary for service delivery. This provision covers the technical processing HubSpot performs to operate the platform and deliver contracted features.

Institutional analysis (Compliance & governance intelligence)

1) REGULATORY LANDSCAPE: The license grant for Customer Data intersects with GDPR's requirements for data processing agreements and the principle of purpose limitation under GDPR Article 5(1)(b). The scope of 'derivative works' in the context of personal data processing may require evaluation under GDPR to confirm that derivative data uses are consistent with the original processing purpose and the Customer's privacy notices. The FTC's guidelines on data use transparency are also relevant for US customers. 2) GOVERNANCE EXPOSURE: Medium. The inclusion of derivative works creation within the license grant is operationally necessary for analytics and AI-assisted product features, but it requires privacy teams to confirm that the Customer's privacy notices and data subject agreements cover derivative processing uses. If HubSpot uses Customer Data to improve AI models or train algorithms, this should be evaluated against the Customer's GDPR lawful basis and data subject disclosures. 3) JURISDICTION FLAGS: EU and UK customers should confirm that the derivative works license is consistent with the processing purposes disclosed to data subjects under their privacy notices. Any use of Contact Data for purposes beyond direct service delivery may require a separate lawful basis under GDPR. California customers should confirm that derivative uses of consumer personal information are consistent with CCPA purpose limitation requirements. 4) CONTRACT AND VENDOR IMPLICATIONS: Procurement and legal teams should review HubSpot's Data Processing Agreement and privacy policy to confirm that the scope of the derivative works license is fully consistent with the Customer's data protection obligations. If HubSpot uses Customer Data for product development or AI training purposes, this should be disclosed in the DPA and evaluated against the Customer's controller obligations. 5) COMPLIANCE CONSIDERATIONS: Privacy teams should map the derivative works license against the Customer's privacy notices and consent mechanisms to confirm alignment. Any discrepancy between the licensed uses and disclosed processing purposes may require privacy notice updates or additional data subject notification. Data Protection Officers should review this provision in conjunction with the DPA.

Provision details

Other risks in this policy

• Non-Cancellable Subscription Fees medium
• Customer Responsibility for Contact Data Legality high
• Mutual Limitation of Liability medium
• Service Suspension Rights medium
• Customer Indemnification Obligation medium
• Terms Modification with 30-Day Notice medium

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