Pencil Terms FAQ
July 2026
This FAQ summarises key points for convenience only. It does not form part of, and does not modify, your agreement with Pencil.
- What is the Pencil Pro Platform?
Our platform is a cloud-based software-as-a-service platform that provides you with access to various third-party AI models to generate creative output for your advertising and marketing use cases. Our platform offers features and functionality to incorporate your brand assets, integrate third-party applications and create agentic workflows. We also offer services to guide and assist you throughout the creative process.
- Who can access the Pencil Pro Platform?
You are able to designate users who will access the platform under your account. This can include your employees, contractors and agency representatives who are working on your behalf.
- How are fees charged for use of the Pencil Pro Platform?
We operate on a credit model. You purchase a credit bundle for your account and draw down on these credits with your usage. The number of credits needed for each action may vary depending on the type of action and the specific third-party AI model used. See Section 4.4 of our terms here.
- How does Pencil provide access to third-party AI models?
We have negotiated agreements with third-party AI model providers to permit the integration and use of their models in our platform. These agreements are designed to provide enterprise-grade protection, including commitments regarding confidentiality, output ownership and restrictions on training.
- How are third-party AI models selected for use in the Pencil Pro Platform?
You have full control. While we make these models available in our platform, you can decide which models to enable and use within your workspace. See our Product-Specific Terms here.
- Can I bring my own AI model into the Pencil Pro Platform for use?
Yes, we offer a process where you can integrate your own AI model in our platform. See our Product-Specific Terms here. Please let us know if this is something that your team is considering.
- Does Pencil or any provider of third-party AI models use my inputs or outputs to train any AI models?
No, we do not use your inputs or outputs to train or improve underlying AI models and require third-party model providers to provide contractual commitments consistent with this principle. The only training that may occur is for fine-tuned custom models that are solely created and made available for your use and not for the benefit of any third parties. See Section 2.2 of our terms here.
- What are Marketplace Models?
We know customers want access to a large variety of models and we provide Marketplace Models as a separate tier of Third-Party AI Models that do not come with Pencil's standard protections like the Output Indemnity. These models are made available as-is if the customer opts to enable such models. Marketplace Models are not required for the general functionality of the platform and do not impact the protections and indemnities provided for non-Marketplace Models. See our Product-Specific Terms here.
- Do I own the data that I upload and use in the Pencil Pro Platform?
Yes, as between you and Pencil, you retain all rights to inputs provided by you through our platform. See Section 3.2 of our terms here.
- Do I own outputs that are generated through the Pencil Pro Platform?
Yes, as between you and Pencil, you own all rights to outputs generated by you through our platform. See Section 3.2 of our terms here.
- Does Pencil provide any protection for intellectual property infringement claims related to outputs?
Yes, we provide indemnification for IP claims related to outputs generated through our platform. We provide this subject to a higher liability cap so that you can use outputs with confidence. See Sections 9 and 10 of our terms here. For clarity, this does not include outputs generated by Marketplace Models.
- Do Pencil and third-party AI model providers treat my inputs and outputs as confidential?
Yes, your inputs and outputs are treated as confidential by Pencil. We also require third-party model providers to provide contractual commitments consistent with this principle. See our Product-Specific Terms here.
- What is Pencil’s security and data protection framework?
We implement industry-standard technical and organizational security measures in line with SOC2 controls - please see our trust centre here for more details. We also process your personal data in accordance with GDPR and provide a robust DPA as part of our standard terms. See our DPA terms here.
- What do the Pencil standard terms cover?
We strive to provide balanced, industry-standard terms that protect all parties while keeping things as simple as possible. In addition to the output indemnity and DPA mentioned above, our terms provide platform-specific details around licensing, SLAs, third-party AI models, third-party applications and relevant restrictions of use. See our terms here. We are happy to address any questions that you might have with our terms. We have found it most efficient for customers to provide an issues list to discuss and align on a path forward.
- Can we use our template MSA instead of the Pencil standard terms?
While we appreciate the desire to use your template, our terms include platform-specific provisions that would need to be replicated in your template, which will lead to additional review cycles and extended timelines. We have found that it's much more efficient and quicker to align using our terms as a basis since it already covers our use case. We are also happy to discuss the approach directly with your Legal team to align on a path forward.
