An indemnification clause is a contractual promise where one party agrees to pay for the other party's losses or damages under certain circumstances, such as a third-party intellectual property claim.
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Why do Enterprise buyers focus so much on Indemnity?
It transfers the legal risk to the vendor. If your product accidentally uses stolen code and the customer gets sued, the indemnity clause forces you (the vendor) to cover their legal fees.
Knowledge Challenge
Mastered Indemnification in SaaS Contracts? Now try to guess the related 6-letter word!
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