The agreement states that Customer is solely responsible for Customer Data and must defend and indemnify Modal against third-party claims alleging intellectual property infringement, misappropriation, or violation of applicable law related to Customer Data.
This analysis describes what Modal'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 establishes that Customer bears the full defense and indemnification burden for any third-party claims arising from Customer Data, including claims that Customer Data infringes third-party intellectual property rights or violates applicable law. Because Input and Output from AI Tools are classified as Customer Data, this obligation extends to AI-generated outputs that Customer uses.
Interpretive note: The legal status of AI-generated Output under copyright law is unsettled in the US and EU, meaning the practical scope of Customer's IP indemnification obligation for Output may depend on future regulatory or judicial developments.
Under this clause, Customer is contractually required to defend Modal against third-party claims arising from Customer Data, including IP infringement claims related to content Customer submits or AI-generated Output Customer uses. The agreement also states that Customer is solely responsible for obtaining any rights necessary to submit Input to AI Tools.
Cross-platform context
See how other platforms handle Customer Sole Responsibility for Customer Data and Indemnification of Modal and similar clauses.
Compare across platforms →"Customer will defend, indemnify, and hold Modal, its affiliates, suppliers and licensors harmless and each of their respective officers, directors, employees and representatives from and against any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to any third party claim with respect to alleged infringement or misappropriation of third-party's intellectual property rights or violation of applicable law related to Customer Data.Excerpt from Modal's Terms of Service
(1) REGULATORY LANDSCAPE: This provision engages copyright law, privacy law, and general commercial indemnification principles.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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This provision establishes that Customer bears the full defense and indemnification burden for any third-party claims arising from Customer Data, including claims that Customer Data infringes third-party intellectual property rights or violates applicable law. Because Input and Output from AI Tools are classified as Customer Data, this obligation extends to AI-generated outputs that Customer uses.
Under this clause, Customer is contractually required to defend Modal against third-party claims arising from Customer Data, including IP infringement claims related to content Customer submits or AI-generated Output Customer uses. The agreement also states that Customer is solely responsible for obtaining any rights necessary to submit Input to AI Tools.
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