If Stability AI faces a legal claim or costs because of how you use its services or because you violated the terms, you are responsible for paying those legal costs and any damages.
This analysis describes what Stability 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 clause places personal financial responsibility on users for legal claims and costs that arise from their use of the platform, including attorneys' fees, which could be significant in the context of IP infringement or regulatory enforcement actions.
Interpretive note: Enforceability of uncapped consumer indemnification obligations varies by jurisdiction; EU and UK consumer protection law may limit the practical scope of this clause as applied to individual consumers.
Users are personally obligated under this provision to cover Stability AI's legal defense costs and any damages arising from their use of the services or violation of the terms, including in scenarios involving third-party intellectual property claims related to AI-generated outputs.
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"You agree to defend, indemnify, and hold harmless Stability AI and its officers, directors, employees, and agents, from and against any claims, liabilities, damages, judgments, awards, losses, costs, expenses, or fees (including reasonable attorneys' fees) arising out of or relating to your violation of these Terms or your use of the Services.— Excerpt from Stability AI's Stability AI Terms of Service
1. REGULATORY LANDSCAPE: Broad consumer-facing indemnification clauses may require evaluation under EU Directive 93/13/EEC on unfair contract terms and the UK Consumer Rights Act 2015, both of which may limit the enforceability of indemnification obligations imposed on consumers. In the US, the FTC Act may engage if indemnification terms are not clearly disclosed and represent an unexpected burden on consumers. 2. GOVERNANCE EXPOSURE: High for enterprise users. The indemnification obligation is uncapped in the document as presented, meaning users could theoretically be liable for substantial legal costs. For businesses using Stability AI to generate client-facing outputs, this provision creates downstream liability exposure if those outputs generate third-party IP claims. 3. JURISDICTION FLAGS: EU and UK consumer-facing indemnification without clear limitation or mutual obligation may face enforceability challenges under consumer protection statutes. California courts have also scrutinized one-sided indemnification clauses in consumer contracts. Business users in any jurisdiction should assess whether their own professional indemnity insurance covers liabilities arising under this clause. 4. CONTRACT AND VENDOR IMPLICATIONS: B2B customers should negotiate caps on indemnification exposure and confirm whether enterprise agreements modify this provision. Procurement teams should flag the absence of a reciprocal indemnification obligation from Stability AI as a material imbalance in the contract risk allocation. 5. COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the indemnification clause as written creates disclosure obligations under applicable consumer contract transparency requirements. Organizations using the platform for commercial output generation should review their own professional liability coverage to determine whether third-party AI output claims are covered.
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This clause places personal financial responsibility on users for legal claims and costs that arise from their use of the platform, including attorneys' fees, which could be significant in the context of IP infringement or regulatory enforcement actions.
Users are personally obligated under this provision to cover Stability AI's legal defense costs and any damages arising from their use of the services or violation of the terms, including in scenarios involving third-party intellectual property claims related to AI-generated outputs.
ConductAtlas has identified this type of provision across 82 platforms. See the full comparison.
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