Midjourney's total financial liability to you is capped at the amount you paid in the 12 months before your claim, and you agree to cover Midjourney's legal costs if a third party sues them because of how you used the service.
This analysis describes what Midjourney'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 agreement excludes consequential and indirect damages and caps total liability at 12 months of subscription fees, while requiring users to indemnify Midjourney against third-party claims arising from user conduct, which could include IP infringement claims related to generated assets.
Interpretive note: Enforceability of consequential damage exclusions and broad indemnification obligations against individual consumers varies by jurisdiction; EU and UK consumer law may limit their application.
Midjourney removed substantial sections from its Terms of Service covering age requirements, content rights, DMCA policy, dispute resolution, payment and billing, and community guidelines. The removal of these section headers and their substantive content means users no longer have explicit written guidance on these critical areas within the primary terms document. This creates operational uncertainty about what terms now govern these areas: whether they were relocated to separate policies, consolidated elsewhere, or eliminated entirely cannot be determined from this change summary alone. The absence of explicit terms on dispute resolution, age verification, and content rights represents a material change in contractual transparency.
View change record →New comprehensive liability cap limiting Midjourney's exposure to 12-month subscription fees while expanding user indemnification obligations to include affiliates and personnel.
View full change record →Users cannot recover lost profits, data loss, or consequential damages from Midjourney regardless of the cause; additionally, users are obligated to defend and indemnify Midjourney against third-party claims arising from their use of the service, including claims related to generated assets.
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You will remain responsible for any amounts you fail to pay in connection with your subscription, including collection costs, bank overdraft fees, collection agency fees, reasonable attorneys' fees, and arbitration or court costs.
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"You understand and agree that we will not be liable to You or any third party for any loss of profits, use, goodwill, or data, or for any incidental, indirect, special, consequential or exemplary damages, however they arise. Our aggregate liability under this Agreement will not exceed the amount You paid for the Services that gave rise to the claim during the 12 months before the claim. [...] To the extent permitted by law, you will indemnify and hold us harmless, our affiliates, and our personnel, from and against any costs, losses, liabilities, and expenses (including attorneys' fees) from third party claims arising out of or relating to your use of the Services and Assets or any violation of these Terms.— Excerpt from Midjourney's Midjourney Terms of Service
REGULATORY LANDSCAPE: Limitation of liability clauses in consumer contracts engage state consumer protection law and may be subject to unconscionability challenges in California and other jurisdictions. The exclusion of data loss as a recoverable category may interact with CCPA and other privacy frameworks that create specific remedies for data breaches. EU and UK consumer protection law may limit the enforceability of consequential damage exclusions and indemnification clauses against consumers. The FTC Act is relevant to the fairness of broad indemnification obligations imposed on individual consumers. GOVERNANCE EXPOSURE: High for enterprise users. The indemnification obligation requires users to cover Midjourney's attorneys' fees and costs from third-party claims arising from asset use, which creates significant exposure in the context of AI-generated content that may infringe third-party IP rights. Enterprise users deploying Midjourney-generated assets commercially face unquantified indemnification exposure. JURISDICTION FLAGS: EU and UK consumer law may render the consequential damage exclusion and broad indemnification clause unenforceable against individual consumers. California courts apply unconscionability doctrine to assess liability cap and indemnification clauses in consumer contracts. The 12-month liability cap may be insufficient to cover losses in high-value commercial deployments. CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should assess whether the 12-month subscription fee cap is adequate given their commercial use case and negotiate modifications for high-value deployments. The indemnification clause is broad and does not contain carve-outs for Midjourney's own IP issues in the service, which may require negotiated clarification in direct agreements. COMPLIANCE CONSIDERATIONS: Legal teams should ensure that internal IP review processes for Midjourney-generated assets are adequate to reduce indemnification exposure. Organizations in sectors with high IP sensitivity (media, advertising, publishing) should assess whether indemnification insurance or contractual protections are appropriate given the scope of this clause.
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The agreement excludes consequential and indirect damages and caps total liability at 12 months of subscription fees, while requiring users to indemnify Midjourney against third-party claims arising from user conduct, which could include IP infringement claims related to generated assets.
Users cannot recover lost profits, data loss, or consequential damages from Midjourney regardless of the cause; additionally, users are obligated to defend and indemnify Midjourney against third-party claims arising from their use of the service, including claims related to generated assets.
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