Glossary
Indemnification
Quick answer
A contract promise by one party to cover the other's losses if certain things go wrong, such as a third-party claim.
In data licensing, the supplier often indemnifies the buyer against claims that it lacked the right to license the data, and the buyer indemnifies the supplier against misuse beyond the agreed terms.
Indemnities are usually limited by caps, exclusions and notice procedures. Their scope is one of the most negotiated parts of a data license and should be reviewed by counsel.
Why Indemnification matters when licensing company data to AI
Indemnification is a contract promise by one party to cover the other's losses if certain things go wrong, such as a third-party claim. In data licensing, the supplier often indemnifies the buyer against claims that it lacked the right to license the records, while the buyer often covers misuse beyond the agreed terms. Scope, caps and notice procedures are heavily negotiated, so counsel should review the clause.
- 01Your work records
- 02Personal details removed
- 03You approve the release
- 04Licensed to AI developers
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