Sourcegraph will cover you legally and financially if someone claims your use of Cody or its AI-generated outputs infringes their intellectual property, with no dollar limit if you are on a signed Order Form and use the latest version with Sourcegraph's filters.
This analysis describes what Sourcegraph Cody'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
Uncapped IP indemnification is a notable commitment for enterprise AI coding tools, as it addresses the risk that AI-generated code may reproduce copyrighted material. However, the uncapped protection is conditional on using the most current version and any filters provided by Sourcegraph.
Interpretive note: The conditions for uncapped indemnification reference 'the most current version available' and 'any filters provided by Sourcegraph,' which are not defined in this document and may require reference to the underlying Order Form or product documentation.
Enterprise customers with a signed Order Form who maintain current version usage and apply Sourcegraph's provided filters receive uncapped IP indemnification for third-party IP claims arising from Cody outputs. Customers not meeting these conditions are subject to the indemnification limits in their underlying Agreement.
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"Sourcegraph will indemnify you against any claims alleging that your use of Cody or any Cody outputs infringes third-party intellectual property rights in accordance with the indemnification terms in your agreement. Sourcegraph's indemnification obligation is uncapped if you have signed an Order Form with us and you use the most current version available and any filters provided by Sourcegraph.— Excerpt from Sourcegraph Cody's Sourcegraph Cody Usage and Privacy
REGULATORY LANDSCAPE: IP indemnification for AI-generated outputs engages copyright law in applicable jurisdictions, including the US Copyright Act and EU copyright directives. The legal landscape around AI and copyright infringement is actively evolving, with multiple ongoing cases in the US and EU addressing whether AI-generated outputs infringe training data copyrights. The FTC may also have interest in representations about AI product liability. GOVERNANCE EXPOSURE: Medium. The uncapped indemnification is conditional on two requirements: using the most current version and applying Sourcegraph's filters. Organizations that fall behind on version updates or do not configure required filters may lose uncapped protection without being aware of the change. The practical value of the indemnification also depends on the terms of the underlying Order Form. JURISDICTION FLAGS: US and EU organizations face different copyright frameworks for AI-generated content infringement claims. Organizations operating in jurisdictions where AI-generated output copyright is unsettled should not rely solely on this indemnification as their only IP risk mitigation. CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should document the conditions for uncapped indemnification in the master agreement and establish processes to maintain current version usage and filter configuration. Standard commercial practice includes IP indemnification in enterprise software agreements, but the uncapped nature conditional on compliance requirements is operationally distinct and should be tracked. COMPLIANCE CONSIDERATIONS: Legal teams should review the indemnification terms in the underlying Order Form to understand the full scope of coverage and any exclusions. Version management and filter configuration should be treated as compliance obligations rather than discretionary practices to preserve indemnification protections. Contract review should confirm that 'most current version' and 'filters provided by Sourcegraph' are defined or definable at the time of any claim.
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Uncapped IP indemnification is a notable commitment for enterprise AI coding tools, as it addresses the risk that AI-generated code may reproduce copyrighted material. However, the uncapped protection is conditional on using the most current version and any filters provided by Sourcegraph.
Enterprise customers with a signed Order Form who maintain current version usage and apply Sourcegraph's provided filters receive uncapped IP indemnification for third-party IP claims arising from Cody outputs. Customers not meeting these conditions are subject to the indemnification limits in their underlying Agreement.
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