Patalyze

TERMS OF SERVICE

Version 1.0 (Current)

Effective October 7, 2024

Patalyze GmbH, Stadionstr. 6, 85716 Unterschleißheim, Germany (“Patalyze”) specialises in services for patent related insights, and provides its online services at patalyze.com.

Customer wishes to utilize Patalyze’s services for business purposes. In order to allow Customer to make use of the services, Customer is granted access to the Services (as defined herein) in accordance with and strictly limited to the scope of these Terms and Conditions.

These Patalyze Terms and Conditions (“Terms and Conditions”) are available at https://www.patalyze.com/terms-and-conditions/v0.1 and can be downloaded and printed by the Customer. Patalyze does not save this agreement text after conclusion of the contract. Patalyze is entitled to modify and/or supplement these Terms and Conditions from time to time; in case of such an update Patalyze will notify Customer by e-mail or other electronic messages, e.g. while using the Services.

By agreeing to these Terms and Conditions, Customer represents to us that the Customer is lawfully able to enter into contracts and, in case the consent to these Terms and Conditions is declared on behalf of a legal entity or another person, the individual agreeing to these Terms and Conditions is legally authorized to act on behalf of the legal entity or person. These Terms and Conditions also refer to and incorporate the Service Specification, Credit Terms, Privacy Policy and any other guidelines or policies Patalyze may provide to
Customer in text form (§ 126b BGB).



1. Definitions


1.1 “Agreement“ refers to the agreement between Customer and Patalyze concerning the subscription to and the use of Patalyze’s Services in accordance with these Terms and Conditions.


1.2 “Business Days” are Monday through Friday, excluding public holidays in Bavaria, Germany.


1.3 “Documents” shall have the meaning as set out in the definition for “Number of Documents”.


1.4 “Input” refers to any input data (texts, documents, patent reference numbers, search queries etc.) transmitted by Customer to Patalyze in connection with the use of the Services as specified in the Service Specification in order to have it processed by the infrastructure operated by Patalyze.

1.5 “Customer” refers to the entity ordering or subscribing to the Patalyze Services as the contracting party.

1.6 “User” / “Users” refers to any user(s) accessing the Services using the Customer’s login credentials or any authentication method provided by granting Customer access to the Services.

1.7 “Order Button” refers to the button in the online ordering process marked to finalize the ordering process (e.g., with the inscription "Buy now", or similar).

1.8 “Output” refers to any data that that has been generated by processing Input using the Services.

1.9 “Services” refers to the entirety of the services offered and provided by Patalyze in accordance with the Service Specifications, excluding Test Functions.


1.10 “Service Specification” refers to the list of functionalities and specifications of the Services as agreed upon conclusion of the Agreement (available at https://patalyze.com/service-specification/v0.1).


1.11 “Credit” refers to the unit of measurement in which the use of Services that are charged to Customer on a consumption-basis is measured. Consumption-based paid Services can only be used if the Customer’s Credit balance is sufficient for the request.


1.12 “Customer Content” refers to Input and Output.



2 Subject of the Agreement


2.1 Subject to these Terms and Conditions and the Service Specification, Patalyze provides Customer with
access to the Services in accordance with the Service Specification.

2.2 Customer shall pay Patalyze for the Services the charges indicated next to or directly above the Order
Button prior to the use of the Order Button or any other charges previously agreed between Patalyze and
Customer.



3 Services of Patalyze


3.1 General


3.1.1 Patalyze provides Customer with access to the Services within the term and scope of the Agreement,
including the Service Specification.


3.1.2 Patalyze will process and store Customer Content in accordance with our Privacy Terms. We will only use Customer Content as necessary to provide you with the Services, comply with applicable law. We will not use Customer Content to develop or improve the Services. Patalyze will only temporarily store Customer Content on its servers to the extent technically required to provide its Services. Any further storage of Customer Content will only be carried out at Customer’s specific request or as individually agreed with the Customers. For the avoidance of doubt, Patalyze shall be entitled to create and retain access logs and meta data of the Customer Content for billing, security and statistical purposes. Such access logs and meta data shall not contain any Customer Content. However, access logs and meta data may contain relevance scores, number of transmitted or identified documents, meta data of API requests such as time of the API request and size of the transmitted Customer Content. Patalyze will not use the Customer Content for improving its Service, unless the Customer agrees in writing or text form.


3.1.3 Patalyze will only access the Customer Content in the event and to the extent required to carry out a diagnosis or to solve technical issues which may eventually compromise the availability of the Services. To the extent required for the purposes mentioned above and in deviation from Section 3.1.2 Patalyze may, in exceptional cases, automatically store Customer Content for a maximum period of 72 hours in case certain error patterns occur during the processing of the Customer Content or improvement request. The Customer Content will be stored in an encrypted form for the duration of the debugging process and will be automatically deleted afterwards. The access to the cryptographic keys for the decryption of the Customer Contents will only be granted in individual cases in the context of a logged process for selected employees of Patalyze who are bound to secrecy and after the access has been approved by the Company‘s management. The Customer Contents stored for debugging purposes will not be linked to any individual
Customer.


3.1.4 Patalyze is free to provide customers with additional functions in alpha or beta versions on a test basis ("Test Functions"). These Test Functions are marked as such or as alpha or beta. Test Functions are not the subject of this Agreement. Patalyze may make them available voluntarily to all or individual customers and the Customer is not obliged to make any payment for the use of Test Functions. Test Functions are intended for test use by the Customer and evaluation by Patalyze. They are not final products or features and may contain bugs or other inaccuracies. Patalyze can change, adapt or discontinue the Test Functions at any time.

3.1.5 Further services, including but not limited to consulting, individual development, or implementation or training services, shall not be part of the regular Services of Patalyze and will only be provided by Patalyze upon express individual agreement.



3.2 Changes to the Services


3.2.1 Patalyze can modify and change the Services and their range of functions at any time and to any extent. Modification resulting in a deletion or modification of data stored by Customer on the online platform provided by Patalyze for the Services ("Patalyze Platform”), will only be implemented after Customer has been notified by Patalyze of such change sufficiently by e-mail and/or via the Patalyze Platform in advance.

3.2.2 Modifications to the Services and their range of functions in accordance with Section 3.2.1 are made without additional costs to Customer.

3.2.3 If a modification relates exclusively to time-critical security updates, extensions of functions, only insignificant components of the Services (such as design or presentation changes) and if it is not a Negative Change within the meaning of Section 3.2.4, Patalyze will inform Customer about the modification via the Customer‘s account on the Patalyze Platform in a clear and comprehensible manner.

3.2.4 If a modification impacts Customer’s ability to access or use the Services in more than a minor way (“Negative Change”), Customer has the right to terminate the Agreement free of charge with a notice period of 30 days. To exercise the right of termination, the customer should contact Patalyze via the contact form (available at https://patalyze.com/support) and state the reason for the termination. The period begins with the receipt of the notice of the Negative Change by Patalyze to the Customer. If the modification is made after Customer has received the notice, the period shall only start to run once the modification has been made. The right to terminate the Agreement does not apply if the accessibility or usability of the Services without the modification is maintained free of charge.

3.2.5 Negative Changes to the Services are deemed to have been approved if Customer does not object to them by exercising his right of termination in accordance with Section 3.2.4. Patalyze will specifically draw Customer’s attention to this legal consequence in the Change Notice.

3.2.6 These Terms and Conditions shall apply mutatis mutandis to any modifications and to the Services in their modified state.



4 Availability


4.1 Patalyze shall provide an annual average of 95% uptime availability for the fee-based Services. The availability calculation excludes any downtime for planned maintenance work as well as service interruptions which are beyond Patalyze’s control, including but not limited to short-term and undue increase in the number of requests by Customer which requires an unplanned increase in system capacity.

4.2 Subject to the exceptions in Section 4.1, availability shall be calculated as the number of hours during which the Services are functional, divided by the total number of hours within the respective calendar year.

4.3 Unavoidable downtime due to planned maintenance work shall be electronically notified to Customer in good time in advance (e.g., by e-mail).



5 Conclusion of the contract


5.1 To access Services, Users are required to create an account (“Account”) by completing a registration process. The information provided during the registration, including but not limited to, name, and email address. By completing the registration, the User affirms that the information provided is complete, truthful, and up-to-date. Any inaccuracies or omissions may result in termination of the account or Services. Users agree to promptly update any provided data to maintain its accuracy and completeness.

5.2 The User’s Account must be assigned to a Customer for purchasing credits or subscriptions. A user may create a new Customer by providing the name, payment information and billing address of the customer. The User represents to Patalyze that the User is lawfully able to enter into contracts and the individual agreeing to these Terms and Conditions is legally authorized to act on behalf of the Customer.

5.3 Patalyze reserves the right to reject Customer requests.


5.4 The Service Order is accepted and the contract is concluded if, after clicking on the Order Button, the
then following page is successfully loaded and an order number is provided.


5.5 Furthermore, in derogation of Sections 5.1 to 5.4, the contract concerning the Account offered by Patalyze can be entered into by other means of distance communication (e.g., e-mail). In this case, Patalyze will provide the Customer with these Terms and Conditions and the Service Specification before entering into the contract, which will be entered into either as soon as Patalyze expressly confirms the conclusion of the contract or by putting the Services at Customer’s disposal.



6 Confidentiality


6.1 “Confidential Information” means any business, technical or financial information, materials, or other subject matter disclosed by one party (“Discloser”) to the other party (“Recipient”) that is identified as confidential at the time of disclosure or should be reasonably understood by Recipient to be confidential under the circumstances. For the avoidance of doubt, Confidential Information includes Customer Content. Recipient agrees it will: (a) only use Discloser's Confidential Information to exercise its rights and fulfill its obligations under this Agreement, (b) take reasonable measures to protect the Confidential Information, and
(c) not disclose the Confidential Information to any third party except as expressly permitted in this
Agreement.


6.2 The obligations in Section 6.1 do not apply to any information that (a) is or becomes generally available to the public through no fault of Recipient, (b) was in Recipient’s possession or known by it prior to receipt from Discloser, (c) was rightfully disclosed to Recipient without restriction by a third party, or (d) was independently developed without use of Discloser’s Confidential Information. Recipient may disclose Confidential Information only to its employees, contractors, and agents who have a need to know and who are bound by confidentiality obligations at least as restrictive as those of this Agreement. Recipient will be responsible for any breach of this Section 6 by its employees, contractors, and agents. Recipient may disclose Confidential Information to the extent required by law or as ordered by a court or administrative authority of competent jurisdiction, provided that Recipient uses reasonable efforts to notify Discloser in
advance.



7 Copyright and Intellectual Property


7.1 Patalyze grants Customer a non-exclusive, non-transferable, non-sublicensable worldwide right to use the Services for its internal intended purpose for the term and within the scope of this Agreement, subject and limited to the authorised number of Users.


7.2 All rights regarding the Customer Content (Input and Output) remain with Customer. However, Customer grants Patalyze the non-exclusive worldwide right to use the Customer Content solely in order to provide Patalyze’s Services to Customer. In particular, Customer grants to Patalyze the right to temporarily store, modify, process, translate, improve and transmit the Input, and to sublicense the foregoing rights to its subcontractors, to the extent required to provide the Services set out in this Agreement.


7.3 Patalyze will not claim or assert any copyright to the Output generated for Customer using the Services. In the event that the Output generated for Customer using the Services is deemed to be protected under copyright laws to the benefit of Patalyze, Patalyze grants to Customer, upon creation of such Output, all exclusive, transferable, sublicensable, worldwide perpetual rights to use all of Patalyze’s rights in the Output (however, this shall not include any rights of third parties in the Output) without limitation and for any existing or future types of use, including without limitation the right to modify Patalyze’s rights in the Output and to
create derivative works.



8 Obligations of Customer


8.1 General


8.1.1 Patalyze owns all right, title, and interest in and to the Services. Customer is only granted rights to use
the Services as explicitly granted in this Agreement. Customer will not, and will not permit Users to:


(a) use the Services or Output in a manner that violates any applicable laws;
(b) use the Services or Output in a manner that infringes, misappropriates, or otherwise violates any rights of a third party (including copyrights and other intellectual property rights of third parties);
(c) reverse engineer, reverse assemble, reverse compile, decompile, translate, engage in model extraction or stealing attacks, or otherwise attempt to discover the source code or underlying components of the Services, algorithms, and systems of the Services (except to the extent these restrictions are contrary to applicable law);
(d) interfere with, disrupt, or create an undue burden on the Service;
(e) trick, defraud, or mislead Patalyze or Users, especially in any attempt to learn sensitive account information such as user passwords, or attempt to impersonate another user or person or use the username of another user, or attempt to bypass any measures of the services designed to prevent or restrict access to the services, or any portion of the Services;
(f) circumvent, disable, or otherwise interfere with security-related features of the Service, including features that prevent or restrict the use or copying of any content or enforce limitations on the use of the Service and/or the content contained therein;
(g) make improper use of Patalyze’s support services or submit false reports of abuse or misconduct;
(h) Engage in unauthorized framing of or linking to the Service;
(i) upload or transmit (or attempt to upload or to transmit) viruses, Trojan horses, or other material, including excessive use of capital letters and spamming (continuous posting of repetitive text), that interferes with anyparty’s uninterrupted use and enjoyment of the Service or modifies, impairs, disrupts, alters, or interferes with the use, features, functions, operation, or maintenance of the Service;
(j) delete the copyright or other proprietary rights notice from any content;
(k) upload or transmit (or attempt to upload or to transmit) any material that acts as a passive or active information collection or transmission mechanism, including without limitation, clear graphics interchange formats ("gifs"), 1×1 pixels, web bugs, cookies, or other similar devices (sometimes referred to as "spyware" or "passive collection mechanisms" or "pcms");
(m) systematically retrieve data or other content from the Service to create or compile, directly or indirectly, a collection, compilation, database, or directory without written permission from Patalyze, or attempt to download a substantial subset of the patent data collection stored in the database of the Service or the databases of Patalyze’s suppliers. A substantial subset of the patent data is defined as more than 50,000 patent documents.


8.1.2 Customer may use the Services solely for the purpose agreed between the Parties. In particular, Customer may not, and will not allow third parties (including Users) to use the Services, Output created using the Services, Documentation or other data, information or service provided by Patalyze unless after expressly authorised by Patalyze in written form

a) in connection with or for the purpose of operating critical infrastructure such as electrical power stations, military or defence equipment, medical appliances or other equipment whose failure or impairment would result in unforeseeable economical or physical damages, including but not limited to critical infrastructure in terms of the European Directive 2008/114/EC;
b) for any illegal activities, including development of any applications infringing any third-party rights or any other applicable laws or regulations;
c) for spamming or any other unsolicited advertising;
d) to perform benchmark or other capacity testing of Patalyze’s technical infrastructure;
e) to create a similar product, service or API whose primary purpose is to provide patent related insights, including but not limited to search of patent documents, processing technical product documentation, mapping patent documents to product documentation, search of prior art documents, assistance in drafting of patent documents, or checking validity of patents;
f) to develop, market or train an algorithm related to patent related insights;
g) to transmit any data to Patalyze which may not be transmitted to or processed by Patalyze due to data protection laws, contractual or statutory confidentiality obligations, export restrictions or other statutory provisions or third-party rights.


8.1.3 Customer is obliged to keep the access credentials provided by Patalyze secure and undertakes not to disclose them to any third parties unless required for the contractually intended and permitted use of the Services. Customer is responsible for all activities that occur under Customer’s account, including the activities of any User who is provisioned with an account under the Customer’s account. Customer is not entitled to repackage or resell access credentials or its access to the Services to any third parties unless expressly agreed upon otherwise. Customer is not permitted share individual login credentials between multiple Users on an account. Customer must provide accurate and up-to-date account information. Customer will promptly notify Patalyze if Customer becomes aware of any unauthorized access to or use of Customer’s account or Patalyze’s Services.

8.1.4 Customer is obliged to observe all legal requirements for the collection, processing and use of data
which is transmitted to Patalayze and processed by Patalyze for Customer in connection with the Services
under this Agreement. Customer guarantees not to collect, process or use any personal data in connection
with the Services without the express consent of the data subject or sufficient other legal authorisation.

8.1.5 Customer shall indemnify Patalyze from any and all third-party claims including the necessary expenses
for legal defence, asserted against Patalyze due to a culpable violation of this Agreement by Customer. If
third parties should assert such claims against Patalyze, Patalyze shall inform Customer about the asserted
claims without undue delay and leave the defence at the discretion of Customer or undertake it in
cooperation with Customer. Patalyze shall not settle or recognise claims of third parties without Customer’s
consent which shall not be unreasonably withheld or delayed. Patalyze shall be entitled to request a
reasonable advance for the incurred legal defence expenses to be anticipated. The indemnification shall
accordingly apply to fines or other regulatory or judicial orders and claims.

8.1.6 In the event that Customer uses Third-Party Applications to access the Services, Customer shall comply
with the acceptable use policies set out by the vendor of the Third-Party Application if applicable.

8.1.7 Customer is only permitted to use the Services in compliance with applicable laws. This also includes export control laws and regulations.

8.1.8 Customer shall not be allowed to access and control Patalyze’s Service through automated procedures which may cause an increased number (exceeding usual human behaviour) of requests to Patalyze’s Service.



9 Remuneration


9.1 Customer agrees to pay all fees charged to Customer’s account (“Fees”) according to the prices andterms on the Pricing Page, or as otherwise stated in an Order Form. Price changes on the Pricing Page will be effective immediately for all price decreases or changes made for legal reasons. All other price changes will be effective 14 days after they are posted. Patalyze has the right to correct pricing errors or mistakes even after issuing an invoice or receiving payment.


9.2 Fees are due upon invoice issuance, unless otherwise agreed in an Order Form. Payments are nonrefundable except as provided in this Agreement. All amounts shall be paid in full in the currency indicated on the invoice. The Customer shall bear all bank and transfer charges as well as any currency conversion costs (if any).


9.3 Documents selected for mapping by the service shall be billable in terms of Section 9.1 if successfully mapped as described in 1.6.


9.4 All amounts are understood to include VAT, unless expressely specified as “netto” or “net”.


9.5 Unless there is no different legal requirement, all invoices shall be made available to the Customer exclusively in a digital format (e.g., as PDF files sent by e-mail to the invoice e-mail address indicated by the Customer or available for download by the Customer on the website in the customer account).


9.6 For Services with a fixed base remuneration (e.g. subscription), the remuneration is due at the beginning of each billing period. Customer may need to prepay for Services through the purchase of Paid Credits or Patalyze may provide customer with Free Credits. All Credits are subject to the Credit Terms.


9.7 If the Customer chooses to pay by credit card or SEPA direct debit for Services with a variable remuneration, Patalyze reserves the right to debit advance payments in the course of the billing period. A first advance payment is due as soon as the number of Credits for mapping a set of documents selected for mapping has exceeded the Customer’s Credit balance. The basic price of a subscription is due at the activation of a subscription and the basic price for the new billing period, as well as any outstanding usage-
dependent payments, is due on the end date of the running billing period. Unless agreed differently, the Customer will receive a monthly invoice.


9.8 If Patalyze is not able to debit the due advance payment in accordance with Section 9.7, Patalyze will block the access of the Customer to the Services. As soon as the debit is successful, Patalyze will immediately restore the access.


9.9 Patalyze reserves the right to block the access to the Services if the Customer has not paid any due Fee after having been sent a written notification by Patalyze (a notification sent by e-mail will suffice). If the Customer pays all outstanding claims, Patalyze will without any delay, but at the latest within three (3) Business Days after the receipt of the entire payment by Patalyze, restore the access of the Customer. Depending on the selected payment method, the following will apply additionally:


9.9.1 In case payments are made by invoice, Patalyze will inform the Customer of the impending blocking after the due date and will request payment from the Customer. In case the payment is not made within a term of three (3) subsequent Business Days, Patalyze will be entitled to block the access of the Customer. After the blocking, Patalyze will send another payment request to the Customer in order to restore access.


9.9.2 In case Patalyze is not able to debit the due payment for payments made by credit card or SEPA direct debit, Patalyze will ask the Customer to update the agreed payment method or to provide a new payment method and will inform the Customer of the impending blocking. In case the debit continues to fail after the notification, Patalyze is entitled to block access to the Services. After the blocking, Patalyze will send another request to the Customer to provide a new payment method in order to restore access.


9.9.3 In the event and to the extent that the Customer, in accordance with the applicable law, is obliged to withhold a certain amount related to taxes, duties, levies or similar (hereinafter referred to as the "Withholding Tax") from payment to Patalyze and remit to the respective tax authorities, the amount payable by the Customer to Patalyze will be increased by the amount due for the said Withholding Tax. Consequently, in each case, Patalyze shall obtain from the Customer an amount corresponding to the amount the Customer would have had to pay in case such Withholding Tax is not applied. The Customer is obliged to withhold the Withholding Tax in the appropriate amount and in accordance with the requirements of the applicable law and to pay the said amount to the competent tax authorities. The Customer is obliged to provide Patalyze with proof related to the proper withholding and corresponding payment of the due Withholding Tax. Patalyze will reasonably cooperate with the Customer in order to determine whether the said deduction or withholding of Withholding Tax from the Service provided by Patalyze is or was required. If this is the case, to the extent permitted by law, Patalyze will cooperate with the Customer in order to reduce the applicable Withholding Taxes and to assign to the Customer any claim for repayment of the Withholding Tax (if applicable).


9.9.4 To dispute an invoice, Customer must contact info@patalyze.com within thirty (30) days of issuance. Overdue undisputed amounts may be subject to a finance charge of 1.5% of the unpaid balance per month, and Patalyze may suspend the Services immediately after providing written notice of late payment.


10 Term and Termination of this Agreement


10.1 The Agreement is concluded for an indefinite period of time. Each Party may terminate the Agreement at
any time with effect to the end of the current billing period.


10.2 If the Parties agree to a fixed term, the term shall be automatically extended by the agreed fixed term
unless the Agreement is terminated.


10.3 The statutory right of termination for good cause remains unaffected.

10.4 In the event
a) of a severe, persisting, imminent or repeated material breach of these Terms and Conditions, in particular an obligation set forth in Section 8 or
b) Patalyze has factual indication of an unauthorized automated use of the Service, Patalyze shall be entitled to temporarily or permanently suspend Customer’s access to the Services upon prior written notice (e-mail sufficient).

Notwithstanding further rights under this Agreement, Patalyze shall restore access within a reasonable period of time if the breach does not continue, is no longer imminent, or Customer has provided a binding statement that the breach will not be repeated. In the event of an act with fraudulent intent, Patalyze is entitled to suspend Customer's access to the Services immediately and indefinitely. Customer is informed in writing (e- mail is sufficient). The suspicion of fraudulent intent is sufficient. Fraudulent intent lies in particular in the following cases:
a) The e-mail address used for registration does not exist or is obviously not valid;
b) The address does not exist or is invalid;
c) Customer has registered several times in order to use the service free of charge or receive free Credits, or Customer still has open payments from other contracts;
d) Customer uses a fraudulent, lost, stolen or blocked/inadmissible means of payment;
e) Customer has contested or demanded the return of a payment without informing Patalyze of a valid
reason for contesting or demanding the return. The suspension of Customer’s access will be upheld until
Customer informs Patalyze of a valid reason.

10.5 In case Customer utilizes Services in a way in which they were not intended to (e.g., accessing Services in an automated way) or allows more Users to utilize Services than agreed, Patalyze reserves the right to disable the access and cancel the Agreement with immediate effect. In this case, Customer will be refunded not consumed paid Credits and subscription fees already paid proportionally.

10.6 Patalyze may also terminate the Customer’s account if it has been inactive for over a year and the Customer has not paid for any usage. Patalyze will provide an advance notice to the Customer in this case.


11 Warranty ("Gewährleistung")


11.1 The Service and all Output, information, content and materials included on or otherwise made available to the User and the Customer through the Service are provided on an “AS IS” and “AS AVAILABLE” basis, unless otherwise specified in text form. Patalyze makes no representation on warranties of any kind, express or implied, as to the accuracy, completeness, timeliness, or reliability of the information or the operation of the Service, unless otherwise specified in text form. Customer expressly agrees the use of the Service is at the sole risk of the Customer. Patalyze disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose. Patalyze only assumes the liability under chargeable subscriptions for the Services to the extent set out in

the following provisions.

11.1.1 If the Services provided by Patalyze are defective, Patalyze shall provide an improved or new product of its choice within a reasonable time as of receiving a written complaint from Customer. If third-party software which Patalyze has licensed from third parties is being used, procurement of publicly available upgrades, updates or patches shall be deemed sufficient.

11.1.2 Customer may reduce the agreed remuneration by a suitable amount if for reasons attributable to Patalyze, the proper provision of Services is not assured within a reasonable period of time set by Customer. The right to reduction is limited to the part of the Services which is defective as compared to the monthly remuneration.

11.1.3 If the reduction as per Section 12.1.2 continues for two (2) consecutive months, or in two (2) months of a quarter, Customer may terminate the Agreement without notice.

11.1.4 Customer shall immediately inform Patalyze of any occurring defects in writing (e-mail to info@patalyze.com sufficient).

11.1.5 Customer shall assist Patalyze in rectifying the defects free of charge, in particular by providing Patalyze with all required documents, data and other information required to analyse and correct the defects.

11.1.6 With respect to the provision of non-chargeable additional services, Patalyze shall be only liable for defects if Patalyze has maliciously concealed (“arglistig verschwiegen”) the defects.



12 Liability and Compensation


12.1 Patalyze is only liable in accordance with the following provisions.

12.2 Patalyze is unlimitedly liable for deliberate acts and gross negligence by Patalyze as well as by its
representative or vicarious agents, for bodily injury, death or harm to health, in accordance with the legal
provisions of the German Product Liability Act (“Produkthaftungsgesetz”) as well as in the scope of a
warranty expressly accepted by Patalyze.

12.3 In case of a slight negligence, Patalyze will only be liable in case of a breach of significant contractual obligations (“vertragswesentliche Pflichten”). In the said case, the liability of Patalyze will be limited to the typical and foreseeable damage at the time the contract has been entered into. A significant contractual obligation within the meaning of this section corresponds to an obligation the fulfilment of which permits the proper performance of the contract in the first place and on the fulfilment of which the other party regularly relies and may rely.

12.4 In the case of Section 13.3, Patalyze assumes no liability for lack of commercial success, lost profits, and indirect damages.

12.5 If Customer is an entrepreneur pursuant to Section 14 German Civil Code (“BGB”) the Parties agree that the typical and foreseeable damage per year within the meaning of Section 13.3 is limited to the amount paid by Customer to Patalyze for the Service during 12 months prior to the damage.

12.6 Any further liability by Patalyze will be excluded. The output is provided “as is” and for informational purposes only. No guarantee is given that the Output is free of errors or omissions. Any Output is no substitute for legal advice. Patalyze disclaims any and all liability for any direct, indirect, incidental, or consequential damages arising out of or in connection with the use of the Output.


12.7 The liability limitations mentioned above will apply accordingly to the employees, contractors and other vicarious agents of Patalyze.



13 Amendements


13.1 Patalyze can modify and adapt the present Terms and Conditions with effect for the future at any time and to any extent.

13.2 Patalyze will submit the modified terms and conditions in text form to the Customer at least one (1) week before they are planned to come into force and will make a separate reference to the new provisions and to the date of their entry. Patalyze will grant to the Customer for a reasonable duration of time of at least one (1) week in order to make the declaration about whether the Customer accepts the amended terms and conditions for the further use of the Services. If no declaration is made within this period, which shall commence running from the receipt of the notification in text-form, the modified terms and conditions shall be deemed as stipulated. Patalyze shall separately advise Customer at the commencement of the notice period as to this legal consequence, i.e., the right of objection, the objection period, and the consequences of a failure to object. In case the Customer objects to the modification within the said period, the Agreementmay be terminated by either party without notice in the event the adherence to the agreement is unreasonable after having weighted the interests of both parties.



14 Final Provisions


14.1 Terms and conditions of Customer are generally rejected and shall not be part of this Agreement, unless Patalyze has expressly agreed in written form.

14.2 Amendments to this Agreement and any side agreements, including the Service Specification, the main body of this Agreement and any potential appendices, must be in written form. This also applies to a waiver of this written form clause.

14.3 Customer may only settle claims against Patalyze or claim a right of retention if its counter claim is uncontested, subject of a legally enforceable final judgment or the counter claim is in a mutual relationship to the respective affected claim.

14.4 This Agreement shall be exclusively governed by the law of the Federal Republic of Germany excluding CISG and conflict of law provisions.

14.5 The exclusive legal venue for all disputes resulting from or in connection with this Agreement is Munich.