Midjourney
Weighted across nine legal categories. Lower is worse.
Executive summary
Midjourney’s Terms impose significant consumer risks through unilateral modification clauses, mandatory individual arbitration with jury waivers, and broad intellectual property licenses that survive account termination. While users retain ownership of generated assets and enjoy straightforward cancellation rights, the agreement heavily favors the company with sole-discretion bans, uncapped indemnification triggers, and a restrictive one-year litigation window. Consumers should proceed with caution and consider negotiating or seeking alternatives with more balanced dispute resolution and data governance terms.
Category breakdown
Acceptance of Terms & Scope
Contract formation and service boundaries
Acceptance occurs passively via continued use without explicit clickwrap consent, and scope vaguely encompasses all current and future platform iterations.
Key findings
- Browsewrap-style acceptance mechanism
- No age verification gate despite minors' data collection
- Broad, undefined service scope
Evidence from the document
This Agreement is effective when the Customer is presented with this Agreement and proceeds to use or access the Services... Continued use of the Services constitutes acceptance of the updated terms.
Recommendations
- Implement explicit clickwrap 'I agree' checkbox
- Clarify scope boundaries and exclude future unnamed services
- Add age-gating for accounts collecting personal data
User Accounts
Registration, suspension, and termination
Termination and suspension occur at the company’s sole discretion without notice, cure periods, or human review, effectively stripping access arbitrarily.
Key findings
- Sole discretion ban clause
- No appeal or human review process
- No data export or compensation provisions
Evidence from the document
Midjourney reserves the right to suspend or ban Your access to the Services at any time, and for any reason.
Recommendations
- Require written notice and reasonable cure period before suspension
- Mandate human review for enforcement actions
- Guarantee data export and prorated refunds upon termination
Intellectual Property & UGC
Content ownership and licensing
Users retain ownership of generated assets, but grant an excessively broad, perpetual, and sublicensable license over all inputs and outputs that survives termination.
Key findings
- Perpetual irrevocable license granted to platform
- License explicitly survives termination
- Outright assignment of community translation contributions
Evidence from the document
You grant to Midjourney... a perpetual, worldwide, non-exclusive, sublicensable no-charge, royalty-free, irrevocable copyright license to reproduce, prepare derivative works of, publicly display, publicly perform, sublicense, and distribute the Content... This license survives termination...
Recommendations
- Narrow license to operational purposes only
- Terminate license automatically upon user content deletion
- Remove outright assignment for voluntary community contributions
Data Privacy
Data collection, usage, and protection
The document provides minimal privacy disclosures, deferring entirely to a separate policy while lacking granular controls, statutory rights references, or security commitments.
Key findings
- Sparse collection description
- No opt-out mechanisms or purpose limitation
- Missing breach notification and retention limits
Evidence from the document
By using the Services, You may provide Midjourney with personal information like Your email address, user name, billing information, favorites, outputs, and text prompts that You enter... Our privacy policy can be found here.
Recommendations
- Integrate specific purpose-limited collection and granular opt-outs
- Explicitly honor GDPR/CCPA rights (access, delete, portability)
- Add security standards and mandatory breach notification timelines
Payment & Subscriptions
Billing and subscription management
Cancellation is straightforward, but the company reserves unilateral rights to modify pricing at any time without advance notice or pro-rated refunds.
Key findings
- Free cancellation allowed
- Immediate price modification right
- No refund for current subscription period
Evidence from the document
We reserve the right to modify or discontinue any aspect of the Service, including pricing and features, at any time.
Recommendations
- Require 30-day advance notice for material price changes
- Offer pro-rated refunds for mid-cycle modifications
- Clarify auto-renewal mechanics and trial conversion warnings
Limitation of Liability
Risk allocation and legal protection
Liability is capped at fees paid over the preceding 12 months, which is commercially reasonable, but broad “AS IS” disclaimers lack explicit carve-outs for gross negligence or willful misconduct.
Key findings
- 12-month fee liability cap
- Standard AS IS warranty disclaimer
- Implicit statutory compliance language
Evidence from the document
Our aggregate liability under this Agreement will not exceed the amount You paid for the Services that gave rise to the claim during the 12 months before the claim.
Recommendations
- Explicitly carve out gross negligence, willful misconduct, and consumer statutory rights
- Clarify that cap applies per claim rather than aggregate across all claims
- Place limitations in conspicuous formatting
Indemnification
Legal responsibility allocation
The indemnity trigger is overly broad, covering claims arising from mere “use of the Services,” and lacks a reciprocal company indemnity or explicit carve-out for corporate fault.
Key findings
- Broad trigger tied to service usage
- Uncapped costs and attorney fees
- No mutual indemnification provision
Evidence from the document
you will indemnify and hold us harmless, our affiliates, and our personnel, from and against any costs, losses, liabilities, and expenses (including attorneys’ fees) from third party claims arising out of or relating to your use of the Services and Assets or any violation of these Terms.
Recommendations
- Narrow trigger to user breaches, unlawful conduct, or IP infringement
- Add explicit carve-out for claims caused by company negligence
- Introduce reciprocal indemnification for platform-side IP claims
Modification of Terms
How agreements can be changed
The company may update terms unilaterally with acceptance deemed automatic through continued use, providing no advance notice, version history, or opt-out/refund mechanism.
Key findings
- Passive acceptance via continued use
- No advance notice period specified
- No rejection pathway or refund guarantee
Evidence from the document
This agreement may be updated and presented again to the Customer from time to time. Continued use of the Services constitutes acceptance of the updated terms.
Recommendations
- Mandate 30-day advance email/in-app notice for material changes
- Allow account closure with pro-rated refund if terms are rejected
- Maintain dated versions and public changelog
Governing Law & Disputes
Jurisdiction and conflict resolution
Mandatory individual arbitration strips consumers of court access and jury trials, imposes a restrictive one-year filing deadline, and leaves consumers bearing their own legal fees.
Key findings
- Binding pre-dispute arbitration required
- Jury and class action waivers
- One-year statute of limitations
- Consumer bears own attorney/expert fees
Evidence from the document
the Dispute will be resolved by binding arbitration rather than in court.
waive any right to trial by jury
Any cause of action... must commence within one (1) year
Recommendations
- Preserve small claims court access and eliminate class/jury waivers
- Extend limitation period to two years or statutory maximum
- Provide 30+ day active opt-out window and ensure company covers arbitration fees
Ex-TerCo provides automated analysis of legal documents for informational purposes. This is not legal advice. Terms can change at any time.