The agreement requires users to defend and indemnify Leonardo AI and its affiliates against all claims, damages, and expenses, including attorneys' fees, arising from the user's use of the platform or breach of the Terms.
This analysis describes what Leonardo AI'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
This provision creates a financial indemnification obligation running from users to Leonardo AI and its affiliates, covering third-party claims arising from the user's platform activity. For business users generating content at scale, this obligation may create material financial exposure in the event of intellectual property or other third-party claims.
Interpretive note: Enforceability of the indemnification clause against consumer users may be limited under EU, UK, and Australian unfair contract terms frameworks.
This new indemnification clause requires users to cover Leonardo AI's legal costs and liabilities arising from user activity, significantly shifting legal risk and financial exposure to users.
View full change record →Under this clause, users are contractually required to cover Leonardo AI's legal costs and damages in the event a third party brings a claim related to the user's content or platform activity. This indemnification obligation applies broadly to any use of the service, including AI-generated content that may be subject to third-party intellectual property claims.
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"You agree to defend, indemnify and hold harmless Leonardo AI and its subsidiaries, agents, licensors, managers, and other affiliated companies, and their employees, contractors, agents, officers and directors, from and against any and all claims, damages, obligations, losses, liabilities, costs or debt, and expenses (including but not limited to attorney's fees) arising from: (i) your use of and access to the Service, including any data or content transmitted or received by you; (ii) your violation of any term of these Terms.— Excerpt from Leonardo AI's Leonardo AI Terms of Service
(1) REGULATORY LANDSCAPE: Broad indemnification clauses in consumer contracts may be subject to scrutiny under the EU Unfair Contract Terms Directive, Australian Consumer Law, and UK Consumer Rights Act 2015, which may limit the enforceability of indemnification obligations against consumer users. The FTC may consider such clauses in the context of unfair or deceptive practices assessments. (2) GOVERNANCE EXPOSURE: Medium. The indemnification obligation is broad, covering all claims arising from use of the service, including third-party intellectual property claims related to AI-generated content. Given the unsettled legal landscape around AI-generated content and potential third-party claims, this exposure is operationally material for commercial users. (3) JURISDICTION FLAGS: EU and UK consumer users may have legal protections that limit or void broad indemnification clauses in standard form consumer contracts. Australian users may similarly benefit from Australian Consumer Law protections against unfair contract terms. US users, particularly in California, should assess the enforceability of indemnification clauses under applicable state law. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise customers and agencies using generated content in client work should assess whether this indemnification obligation is compatible with their own client contracts, and whether additional liability coverage or insurance is required. The inclusion of attorneys' fees in the indemnification scope is particularly notable. (5) COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the indemnification clause is enforceable in all relevant jurisdictions and whether it creates asymmetric liability exposure for commercial users. Enterprise contracts should seek to negotiate the scope of indemnification obligations, particularly with respect to third-party intellectual property claims arising from AI-generated content.
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This provision creates a financial indemnification obligation running from users to Leonardo AI and its affiliates, covering third-party claims arising from the user's platform activity. For business users generating content at scale, this obligation may create material financial exposure in the event of intellectual property or other third-party claims.
Under this clause, users are contractually required to cover Leonardo AI's legal costs and damages in the event a third party brings a claim related to the user's content or platform activity. This indemnification obligation applies broadly to any use of the service, including AI-generated content that may be subject to third-party intellectual property claims.
ConductAtlas has identified this type of provision across 78 platforms. See the full comparison.
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