Warranties and indemnity function as a unit. A licensee relies on the licensor’s warranty. Indemnity is the licensor’s financial punishment if the warranty is false. When you provide indemnity, you agree to pay for their damages for certain situations. For example, if you indemnify a licensee against infringement, then you will have to pay the licensee’s damages (and legal fees) if the licensee is sued for infringement.

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