Cursor
Weighted across nine legal categories. Lower is worse.
Executive summary
The Cursor Terms of Service offer strong protections for user-generated content and AI training consent, but contain several consumer-unfriendly provisions regarding account termination, contract modifications, and dispute resolution. Mandatory binding arbitration with class action waivers significantly limits legal recourse, while immediate-effect term changes and a $100 liability cap further tilt the balance toward the company.
Category breakdown
Acceptance of Terms & Scope
Contract formation and service boundaries
Acceptance is achieved through browsewrap language rather than explicit clickwrap, though the scope is clearly defined and age verification is explicitly stated.
Key findings
- Browsewrap acceptance via 'By using the Service'
- Clear definition of covered services and APIs
- Explicit minimum age requirement of 18 or majority
Evidence from the document
By using the Service, you agree to these Terms.
Recommendations
- Implement explicit clickwrap checkboxes during onboarding
- Provide a plain-language summary of key obligations
User Accounts
Registration, suspension, and termination
The company reserves broad rights to terminate or suspend accounts without notice or reason, and retains discretion to immediately delete user data upon closure without offering export options.
Key findings
- Termination allowed at any time without notice
- No guaranteed data export or migration period
- Appeal process exists via email but lacks formal review timeline
Evidence from the document
We reserve the right to modify, suspend, or discontinue the Services or your access to your Services, in whole or in part, at any time without notice to you.
Upon termination... we may at our option delete any Content or other data associated with your account.
Recommendations
- Require advance notice and specific violation triggers for termination
- Mandate a 30-day data export window before deletion
- Introduce a graduated enforcement policy
Intellectual Property & UGC
Content ownership and licensing
Users retain full ownership of inputs, receive assignment of generated suggestions, and grant only a narrow operational license, with explicit opt-in consent required for AI model training.
Key findings
- User retains all rights to Inputs
- Anysphere assigns suggestion rights back to user
- AI training requires explicit user agreement
- Limited license restricted to service provision and safety
Evidence from the document
ANYSPHERE WILL NOT USE CONTENT TO TRAIN, OR ALLOW ANY THIRD PARTY TO TRAIN, ANY AI MODELS, UNLESS YOU’VE EXPLICITLY AGREED TO THE USE OF CONTENT FOR TRAINING.
You retain all of your right, title, and interest that you have in Inputs, and Anysphere hereby assigns to you all of our right, title, and interest if any in and to any Suggestions.
Recommendations
- Clarify that the limited license terminates automatically upon account deletion
- Consider adding attribution requirements if commercial exploitation occurs
Data Privacy
Data collection, usage, and protection
The document defers detailed privacy practices to a separate policy, mentions aggregated third-party sharing, but lacks explicit retention periods, breach notification commitments, or granular control mechanisms within the terms themselves.
Key findings
- References external Privacy Policy for full details
- Usage data shared only in aggregated/de-identified form
- No explicit data retention schedule or security breach commitment in-text
Evidence from the document
Anysphere may: (i) collect, analyze, and otherwise process Usage Data internally for its business purposes... and (ii) disclose Usage Data to third parties only in an aggregated and/or de-identified form
Recommendations
- Incorporate core GDPR/CCPA rights directly into the ToS
- Specify data retention periods and breach notification timelines
- Add clear opt-out mechanisms for internal analytics usage
Payment & Subscriptions
Billing and subscription management
Auto-renewal is clearly disclosed with online cancellation available, and price changes require advance notice, though fees are strictly non-refundable and continued use constitutes acceptance of new pricing.
Key findings
- Clear auto-renewal and renewal date billing
- Online cancellation via billing menu supported
- Price changes require advance notice via UI/email
- Strictly non-refundable except as legally required
Evidence from the document
The Subscription Service will begin on the Subscription Billing Date and continue for the subscription period that you select on your account... and will automatically renew for successive periods of the same duration... unless you cancel
Your account will be charged automatically on the Subscription Billing Date and thereafter on the renewal date
Recommendations
- Offer prorated refunds for mid-cycle cancellations
- Replace 'continued use' acceptance of price hikes with explicit affirmative consent
- Remove the 24-hour pre-renewal cancellation window restriction
Limitation of Liability
Risk allocation and legal protection
Liability is capped at a trivial $100 flat amount or six months of payments, excludes indirect damages broadly, and lacks explicit carve-outs for gross negligence or willful misconduct despite standard boilerplate language.
Key findings
- Aggregate liability capped at greater of 6-month payments or $100
- Broad exclusion of indirect and consequential damages
- Beta services carry zero liability disclaimer
- Relies on 'fullest extent permitted by law' without specific statutory carve-outs
Evidence from the document
THE AGGREGATE LIABILITY OF THE ANYSPHERE ENTITIES TO YOU FOR ALL CLAIMS... IS LIMITED TO THE GREATER OF: (A) THE AMOUNT YOU HAVE PAID TO ANYSPHERE FOR ACCESS TO AND USE OF THE SERVICE IN THE SIX (6) MONTHS PRIOR TO THE EVENT OR CIRCUMSTANCE GIVING RISE TO THE CLAIM OR, IF GREATER, (B) $100.
Recommendations
- Increase liability cap to a more reasonable multiple of annual fees
- Explicitly carve out gross negligence, willful misconduct, and statutory consumer rights
- Remove blanket zero-liability clause for beta features
Indemnification
Legal responsibility allocation
Indemnification is reasonably scoped to user breaches, unlawful conduct, and IP infringement of inputs, avoiding overbroad triggers, though it lacks a reciprocal indemnity from the company.
Key findings
- Triggered only by user misuse, terms violations, or input IP claims
- Reasonable scope without covering company negligence
- Company retains defense control rights
- No reciprocal indemnity provided to users
Evidence from the document
you will defend and indemnify Anysphere... from and against any and all liabilities, claims, damages, expenses... arising out of or relating to: (1) your unauthorized use of, or misuse of, the Service; (2) your violation of any portion of these Terms... or (3) any claim that your Input violates any third-party intellectual property...
Recommendations
- Add reciprocal indemnification for company IP infringement or negligence
- Cap indemnification costs or require mutual good-faith negotiation before litigation
- Clarify that indemnity does not apply to claims arising from platform defects
Modification of Terms
How agreements can be changed
Changes take effect immediately upon posting with continued use deemed acceptance, lacking a mandatory advance notice period or refund rights for material adverse changes.
Key findings
- Modifications effective immediately upon posting
- Continued use serves as confirmation of acceptance
- No fixed advance notice period for general terms
- Arbitration changes allow a separate 30-day rejection window
Evidence from the document
All modifications will be effective when they are posted, and your continued accessing or use of the Service will serve as confirmation of your acceptance of those modifications.
Recommendations
- Require 14-30 days advance notice via email or in-app banner for material changes
- Allow users to reject material changes and receive a pro-rated refund
- Maintain a public changelog with version dates
Governing Law & Disputes
Jurisdiction and conflict resolution
Mandatory binding arbitration with class action and jury trial waivers significantly restricts consumer access to courts, though a 30-day opt-out, small claims preservation, and fee-safety valves provide partial mitigation.
Key findings
- Mandatory individual arbitration waives jury and class actions
- 30-day opt-out window preserved for arbitration
- Fees split equally with economic hardship safeguards
- California governing law with exclusive San Francisco venue
Evidence from the document
You agree that any and all disputes or claims that have arisen or may arise between you and Anysphere... will be resolved exclusively through final and binding arbitration, rather than a court... You agree that, by entering into these Terms, you and Anysphere are each waiving the right to a trial by jury or to participate in a class action.
Recommendations
- Eliminate mandatory arbitration and class waivers entirely
- Allow consumers to sue in their home jurisdiction
- Ensure company covers all arbitration fees regardless of claim size
Ex-TerCo provides automated analysis of legal documents for informational purposes. This is not legal advice. Terms can change at any time.