Terms of Use

Last updated: February 2026

1. Acceptance of Terms

By accessing or using Pencil, including our IDE extensions (for Cursor, VS Code, and Windsurf), desktop application, website, and any related services (collectively, the “Service”), you agree to be bound by these Terms of Use (“Terms”). If you do not agree to these Terms, you may not access or use the Service.

These Terms constitute a legally binding agreement between you and Pencil (“we,” “us,” or “our”). We may update these Terms from time to time, and your continued use of the Service after any changes constitutes acceptance of the revised Terms.

2. License Grant

Subject to your compliance with these Terms, we grant you a limited, non-exclusive, non-transferable, revocable license to access and use the Service for your personal or internal business purposes. This license includes the right to:

  • Install and use the Pencil IDE extensions in supported editors.
  • Download and use the Pencil desktop application on macOS, Windows, or Linux.
  • Create, edit, and export design files using the Service's features.
  • Use AI-powered design generation tools as part of the Service.

3. Restrictions

You agree not to:

  • Reverse engineer, decompile, disassemble, or otherwise attempt to derive the source code of the Service.
  • Modify, adapt, translate, or create derivative works based on the Service or any part thereof.
  • Rent, lease, loan, sell, sublicense, distribute, or otherwise transfer the Service to any third party.
  • Remove, alter, or obscure any proprietary notices, labels, or marks on the Service.
  • Use the Service to develop a competing product or service.
  • Use the Service in any manner that could damage, disable, overburden, or impair our servers or networks.
  • Use automated scripts, bots, or other means to access the Service for any purpose without our prior written consent.

4. Intellectual Property

The Service, including all software, designs, text, graphics, logos, icons, images, audio clips, data compilations, and the overall arrangement thereof, is the exclusive property of Pencil and its licensors. The Service is protected by copyright, trademark, patent, trade secret, and other intellectual property or proprietary rights laws.

The Pencil name, logo, and all related names, logos, product and service names, designs, and slogans are trademarks of Pencil or its affiliates. You may not use such marks without our prior written permission. All other names, logos, product and service names, designs, and slogans on the Service are the trademarks of their respective owners.

5. User Content

You retain ownership of all design files, assets, and other content that you create using the Service (“User Content”). By using the Service, you grant us a limited license to process, store, and transmit your User Content solely as necessary to provide and improve the Service.

You are solely responsible for your User Content and the consequences of sharing or publishing it. You represent and warrant that you own or have the necessary rights, licenses, and permissions to use and authorize us to process your User Content as described in these Terms.

We do not claim ownership over your User Content. Design files created in the .pen format remain entirely yours.

6. Disclaimer of Warranties

THE SERVICE IS PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR COURSE OF PERFORMANCE.

We do not warrant that the Service will be uninterrupted, timely, secure, or error-free, that the results obtained from the use of the Service will be accurate or reliable, or that any defects in the Service will be corrected. AI-powered features, including design generation, are provided on a best-effort basis and may produce unexpected or imprecise results.

7. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL PENCIL, ITS AFFILIATES, DIRECTORS, EMPLOYEES, OR AGENTS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF PROFITS, DATA, USE, GOODWILL, OR OTHER INTANGIBLE LOSSES, RESULTING FROM:

  • Your access to, use of, or inability to access or use the Service.
  • Any conduct or content of any third party on the Service.
  • Any content obtained from the Service.
  • Unauthorized access, use, or alteration of your transmissions or content.

In no event shall our total aggregate liability exceed the greater of one hundred dollars ($100) or the amount you have paid us in the twelve (12) months preceding the claim.

8. Termination

We may terminate or suspend your access to the Service immediately, without prior notice or liability, for any reason, including if you breach these Terms. Upon termination, your right to use the Service will immediately cease.

You may terminate your use of the Service at any time by uninstalling the IDE extensions and desktop application and ceasing all use of the Service. All provisions of these Terms which by their nature should survive termination shall survive, including ownership provisions, warranty disclaimers, indemnity, and limitations of liability.

9. Governing Law

These Terms shall be governed by and construed in accordance with the laws of the State of Delaware, United States, without regard to its conflict of law provisions. You agree to submit to the personal and exclusive jurisdiction of the courts located in Delaware for the resolution of any disputes arising out of or relating to these Terms or the Service.

Any claim or cause of action arising out of or related to use of the Service or these Terms must be filed within one (1) year after such claim or cause of action arose, or it shall be forever barred.

10. Changes to Terms

We reserve the right, at our sole discretion, to modify or replace these Terms at any time. If a revision is material, we will provide at least thirty (30) days' notice prior to any new terms taking effect. What constitutes a material change will be determined at our sole discretion.

By continuing to access or use the Service after any revisions become effective, you agree to be bound by the revised Terms. If you do not agree to the new Terms, you are no longer authorized to use the Service.

11. Contact

If you have any questions about these Terms, please contact us at:

legal@pencil.dev