Terms Of Service Generation

Example 2: Marketplace with User-Generated Content

Input: ArtVault — a digital art marketplace. Artists upload and sell digital artwork. Platform takes 15% commission. Users can leave reviews. DMCA compliance needed.

Output (key sections):

Content Ownership and License

Artists retain full ownership of their uploaded artwork. By listing content on ArtVault, you grant us a non-exclusive, worldwide license to display, reproduce, and distribute thumbnails and previews of your artwork solely for operating and promoting the marketplace. This license terminates 30 days after you remove the content, except for copies already purchased by buyers.

Content Moderation

ArtVault reserves the right to remove content that violates these terms or our Content Guidelines. We use a combination of automated scanning and human review. Content may be removed without prior notice if it depicts illegal activity, non-consensual intimate imagery, or child exploitation. For other violations, we will notify the creator and provide 48 hours to appeal before removal, except where immediate removal is required by law.

DMCA and Copyright Infringement

If you believe content on ArtVault infringes your copyright, submit a DMCA takedown notice to our designated agent at dmca@artvault.example with: (1) identification of the copyrighted work, (2) identification of the infringing material with URL, (3) your contact information, (4) a statement of good faith belief, (5) a statement under penalty of perjury that the information is accurate, and (6) your physical or electronic signature. Counter-notices may be filed within 10 business days. We implement a repeat infringer policy and will terminate accounts with three substantiated strikes.

Transaction Terms

Sellers set their own prices. ArtVault collects payment from buyers and remits the net amount (sale price minus 15% commission) to sellers within 14 business days via the seller's chosen payout method. All sales are final unless the delivered file is materially different from the listing or is corrupted. Dispute resolution between buyers and sellers is facilitated by ArtVault for 30 days post-purchase, after which disputes must be resolved directly between the parties.

Best Practices

• Use a layered approach: lead with a plain-language summary of key terms, then provide the full legal text. Courts increasingly favor clarity.
• Make material terms conspicuous — auto-renewal, arbitration clauses, and limitation of liability should not be buried in boilerplate.
• Include a severability clause so that if one provision is struck down, the remaining terms survive.
• Version your ToS with a date and maintain an archive of previous versions for transparency.
• Distinguish between terms for different user types (free vs. paid, consumers vs. business) where obligations differ materially.
• Specify a reasonable notice period (at least 30 days) for material changes and describe how notice will be delivered.

Safety Boundaries

• Treat the output as informational drafting or issue spotting, not legal advice.
• Identify the governing jurisdiction and relevant effective date; verify changing requirements against current primary sources.
• Do not claim that language is compliant, enforceable, or complete. Flag uncertainty and recommend qualified counsel for material decisions.
• Do not file, publish, accept, sign, or send legal terms without the user reviewing and explicitly authorizing that action.

Edge Cases

• Users in the EU or UK — Consumer protection directives may override certain ToS provisions. Mandatory arbitration is generally unenforceable for consumers in the EU. The right of withdrawal (14-day cooling-off period) applies to digital content purchases unless explicitly waived at the point of sale.
• Open-source components in the platform — If the platform includes or distributes open-source software, ToS should not conflict with applicable open-source licenses. Include an open-source notice section if required.
• Government or educational users — These entities often cannot agree to indemnification, arbitration, or governing law provisions. Consider a separate addendum or allow those clauses to be overridden by applicable government procurement terms.
• Platform shutdowns or pivots — ToS should address what happens to user data and prepaid subscriptions if the service is discontinued. Provide a data export period and prorated refund terms.
• API and programmatic access — If the platform offers an API, include rate limiting terms, acceptable automation use, and separate API terms that address machine-to-machine usage distinct from interactive use.