Terms of Service · Capsules

These Terms of Service (“Terms”) govern your access to and use of Capsules, a visual storytelling platform operated by Third Room Studio LLC, a Delaware limited liability company (“Company,” “we,” “us,” or “our”). By creating an account or using the Service, you agree to these Terms. If you do not agree, do not use the Service.

1. Acceptance of Terms

By accessing or using Capsules (“Service”), you confirm that you are at least 18 years old (or the age of majority in your jurisdiction), have read and understood these Terms, and agree to be bound by them as well as our Privacy Policy. If you are using the Service on behalf of an organization, you represent that you have authority to bind that organization to these Terms.

2. Description of Service

Capsules is an AI-powered platform that allows users to author, generate, and publish visual narratives (“Capsules”) by combining written text with AI-generated imagery and video. Features include but are not limited to story creation, media generation, workspace collaboration, custom domains, and publishing tools.

3. User Accounts & Responsibilities

You are responsible for maintaining the confidentiality of your account credentials and for all activity that occurs under your account. You agree to:

Provide accurate, current, and complete registration information.
Promptly update your information to keep it accurate and current.
Notify us immediately of any unauthorized use of your account at [email protected].
Not share your account credentials with third parties or allow others to access your account.
Comply with all applicable laws and regulations in connection with your use of the Service.

We reserve the right to suspend or terminate accounts that violate these Terms or engage in fraudulent, abusive, or otherwise harmful conduct.

4. Acceptable Use Policy

You agree not to use the Service to:

Generate, upload, or distribute content that is illegal, harmful, or infringing.
Create content depicting or promoting violence, harassment, hate speech, child exploitation, or non-consensual intimate imagery.
Reverse engineer, decompile, or attempt to extract the source code of the Service.
Circumvent rate limits, access controls, or security mechanisms.
Use automated tools (bots, scrapers, crawlers) to access the Service without prior written consent.
Interfere with or disrupt the integrity or performance of the Service or its underlying infrastructure.
Impersonate any person or entity, or misrepresent your affiliation with any person or entity.

We reserve the right to remove content and terminate access for violations of this policy at our sole discretion.

5. Content Ownership & Licenses

5.1 Your Content

You retain ownership of all text, images, and other materials you upload or create using the Service (“User Content”). By submitting User Content, you grant Third Room Studio LLC a worldwide, non-exclusive, royalty-free license to host, store, reproduce, modify, display, and distribute your User Content solely as necessary to operate and improve the Service.

5.2 AI-Generated Content

[Draft — Pending Legal Review]

Images and video generated by AI models through the Service (“AI-Generated Content”) are produced using third-party AI systems (including Replicate-hosted models). The legal ownership and copyright status of AI-generated content is an unsettled area of law. We make no warranty as to the copyrightability of AI-Generated Content. You assume full responsibility for your use of AI-Generated Content, including any downstream commercial use.

We do not claim ownership over AI-Generated Content produced from your prompts. However, you acknowledge that other users may independently generate similar or identical outputs using similar prompts.

5.3 Our Intellectual Property

The Service, including its design, software, trademarks, and underlying technology, is owned by Third Room Studio LLC and protected by applicable intellectual property laws. Nothing in these Terms grants you any right to use our name, logos, or trademarks without our prior written consent.

6. AI-Generated Content Disclaimers

Capsules uses AI models to generate images and video. You acknowledge and agree that:

AI-generated outputs may be inaccurate, biased, unexpected, or offensive despite reasonable safeguards.
You are responsible for reviewing all AI-Generated Content before publication or distribution.
We do not guarantee that AI-Generated Content will be free from third-party intellectual property claims.
AI generation is dependent on third-party infrastructure (Replicate) and may be subject to that provider's terms and usage policies.
Generated content may not be used for deceptive, defamatory, or unlawful purposes, including synthetic media designed to mislead (deepfakes).

7. Subscriptions & Billing

Certain features of the Service require a paid subscription. By subscribing, you authorize us to charge your payment method on a recurring basis. All payments are processed through Stripe. You agree to Stripe's terms of service in addition to ours.

Subscriptions automatically renew unless canceled at least 24 hours before the renewal date.
Refunds are handled on a case-by-case basis. Contact [email protected] for refund requests.
We reserve the right to change pricing with 30 days' notice. Continued use after the effective date constitutes acceptance of new pricing.
AI generation credits are consumed per use and are non-refundable except as required by applicable law.

8. Third-Party Services

The Service integrates with and depends on the following third-party services. Your use of these services is also governed by their respective terms and privacy policies:

Replicate — AI model inference for image and video generation (replicate.com/terms)
Stripe — payment processing and subscription management (stripe.com/legal)
Google OAuth — optional sign-in via Google account (policies.google.com/terms)
DigitalOcean Spaces / Cloudflare R2 — cloud media storage
Sentry — error monitoring and performance tracking (sentry.io/terms)

We are not responsible for the availability, accuracy, or practices of any third-party service. Outages or changes in third-party services may affect Service functionality.

9. Termination

You may delete your account at any time from your account settings. We may suspend or terminate your access to the Service at our discretion, with or without notice, for violation of these Terms or for any other business reason. Upon termination, your right to use the Service ceases immediately. We may retain certain data as required by law or for legitimate business purposes.

10. Disclaimers & Limitation of Liability

Please read this section carefully.

The Service is provided “as is” and “as available” without warranties of any kind, express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, and non-infringement.

To the fullest extent permitted by law, Third Room Studio LLC shall not be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses arising out of your use of the Service. Our total liability for any claim arising under these Terms shall not exceed the amount you paid to us in the 12 months preceding the claim.

11. Governing Law & Disputes

These Terms are governed by the laws of the State of Delaware, without regard to conflict of law principles. Any dispute arising under or in connection with these Terms shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association, except that either party may seek injunctive relief in a court of competent jurisdiction. You waive any right to participate in a class action lawsuit or class-wide arbitration.

12. Changes to These Terms

We may update these Terms from time to time. We will notify you of material changes by email or by a prominent notice in the Service. Your continued use of the Service after the effective date of revised Terms constitutes your acceptance. If you do not agree to the updated Terms, you must stop using the Service.

13. Contact Information

For questions about these Terms, please contact:

Third Room Studio LLC
Delaware, United States
Email: [email protected]
Support: [email protected]