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This provision designates California law as governing and establishes San Francisco County state and federal courts as the exclusive venue for disputes that cannot be resolved by the parties directly, while permitting either party to seek injunctive relief in any competent court.
This analysis describes what Perplexity 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
The mandatory exclusive forum in San Francisco County may impose significant practical and financial burdens on non-U.S. or non-California Customers seeking to resolve disputes with Perplexity through litigation. The provision does not include arbitration or class action waiver requirements, preserving access to courts.
Interpretive note: Enforceability of the California forum selection clause may vary for EU, UK, and other non-U.S. Customers depending on applicable local mandatory jurisdiction rules.
Under this clause, all unresolved disputes must be litigated in San Francisco County, California, under California law. Customers located outside California or the United States must litigate in that jurisdiction, which may affect the practical cost and feasibility of dispute resolution.
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"This Agreement shall be governed by the laws of California. The parties shall try in good faith to resolve any dispute or claim related to or arising out of this Agreement, or the interpretation, making, performance, breach or termination thereof, amicably by themselves. If the dispute or claim cannot be resolved by the parties themselves, then it shall be adjudicated exclusively by the state and federal courts located in San Francisco County, California. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for temporary or permanent injunctive relief without breach of this Section 11.1.Excerpt from Perplexity AI's Perplexity API Terms of Service
1) REGULATORY LANDSCAPE: Choice of law and forum selection clauses are generally enforceable in U.S. B2B commercial agreements under federal procedural law and California contract law. For EU Customers, mandatory consumer or commercial protection laws in EU member states may limit the enforceability of non-EU forum selection clauses, particularly under EU regulations governing jurisdiction in civil and commercial matters (Brussels I Recast). The provision does not include mandatory arbitration or class action waiver, which distinguishes it from more restrictive dispute resolution clauses. 2) GOVERNANCE EXPOSURE: Low for U.S.-based Customers familiar with California litigation. Medium for international Customers for whom San Francisco County litigation may be operationally impractical. 3) JURISDICTION FLAGS: EU and UK Customers should assess whether California forum selection clauses are enforceable in their home jurisdictions. In some EU member states, mandatory local jurisdiction rules may override contractual forum selection clauses for certain claim types. Non-U.S. Customers should obtain local counsel advice on enforceability. 4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise Customers negotiating API access may seek to add an arbitration option or a neutral forum clause if San Francisco County litigation is operationally impractical. The good-faith resolution requirement before litigation is a standard procedural step but does not impose a formal mediation obligation. 5) COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the California governing law selection creates any gaps in mandatory regulatory protections that apply under Customer's home jurisdiction. The California choice may affect how certain statutory rights, such as GDPR rights or local consumer protections, interact with the contractual framework.
The mandatory exclusive forum in San Francisco County may impose significant practical and financial burdens on non-U.S. or non-California Customers seeking to resolve disputes with Perplexity through litigation. The provision does not include arbitration or class action waiver requirements, preserving access to courts.
Under this clause, all unresolved disputes must be litigated in San Francisco County, California, under California law. Customers located outside California or the United States must litigate in that jurisdiction, which may affect the practical cost and feasibility of dispute resolution.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Perplexity AI.