Glossary
Indemnification
A contractual promise to cover the other party’s losses if a specified risk materializes — typically, a supplier indemnifies a buyer against claims that the licensed data infringed someone else’s rights.
In data deals it can run both ways: the supplier indemnifies against rights defects in the data; the buyer may indemnify against uses beyond the licence. Negotiated variables include caps, exclusions, and who controls the defence. Several AI vendors now indemnify customers for model outputs — the same mechanism one level up the chain.
Why it matters
The indemnity clause prices who bears the risk that clearance was wrong.