Ship free-tier watermark policy (2 clean renders) and align pricing/legal copy.

Co-authored-by: Cursor <cursoragent@cursor.com>

lib/billing.ts

@@ -211,6 +211,7 @@ export async function adminResetUserCredits(
     where: { id: userId },
     data: {
       plan,
+      subscriptionStatus: plan === "PREMIUM" ? "pro" : "free",
       monthlyCredits,
       videosUsed: used,
       extraCredits: cappedExtras,
@@ -245,6 +246,7 @@ export async function activateProPlan(
     where: { id: userId },
     data: {
       plan: "PREMIUM",
+      subscriptionStatus: "pro",
       subscribedAt: new Date(),
       ...(opts.stripeCustomerId !== undefined
         ? { stripeCustomerId: opts.stripeCustomerId }
@@ -267,6 +269,7 @@ export async function downgradeToFreePlan(userId: string) {
     where: { id: userId },
     data: {
       plan: "FREE",
+      subscriptionStatus: "free",
       stripeSubscriptionId: null,
       subscribedAt: null,
       cardLast4: null,

lib/ffmpeg/brand-watermark.ts

@@ -0,0 +1,20 @@
+/**
+ * Modular FFmpeg filter fragments for the Songs2VID brand watermark overlay.
+ * Always bottom-right with padding; scales to a fraction of frame width.
+ */
+export function buildBrandWatermarkOverlayFilters(options: {
+  baseLabel: string;
+  watermarkInputIndex: number;
+  watermarkWidthPx: number;
+  offsetX?: number;
+  offsetY?: number;
+  outLabel?: string;
+}): string[] {
+  const ox = options.offsetX ?? 20;
+  const oy = options.offsetY ?? 20;
+  const out = options.outLabel ?? "vout";
+  return [
+    `[${options.watermarkInputIndex}:v]scale=${options.watermarkWidthPx}:-1[wm]`,
+    `[${options.baseLabel}][wm]overlay=W-w-${ox}:H-h-${oy}[${out}]`,
+  ];
+}

lib/ffmpeg/encode.ts

@@ -25,6 +25,7 @@ import {
   sanitizeDrawtext,
   type WatermarkSettings,
 } from "../watermark";
+import { buildBrandWatermarkOverlayFilters } from "./brand-watermark";
 
 function getFfmpegPath(): string {
   if (process.env.FFMPEG_PATH) return process.env.FFMPEG_PATH;
@@ -217,10 +218,14 @@ export async function encodeVideo(options: {
     });
     filterParts.push(`[${baseLabel}]${draw}[vout]`);
   } else if (applyWm === "default-png" && defaultWmInputIndex !== null) {
-    const { x, y } = overlayXy(settings.position, settings.offsetX, settings.offsetY);
     filterParts.push(
-      `[${defaultWmInputIndex}:v]scale=${watermarkWidth}:-1[wm]`,
-      `[${baseLabel}][wm]overlay=${x}:${y}[vout]`,
+      ...buildBrandWatermarkOverlayFilters({
+        baseLabel,
+        watermarkInputIndex: defaultWmInputIndex,
+        watermarkWidthPx: watermarkWidth,
+        offsetX: settings.offsetX,
+        offsetY: settings.offsetY,
+      }),
     );
   } else if (applyWm === "default-text") {
     const draw = buildDrawtextFilter({

lib/jobs/create-job.ts

@@ -41,6 +41,7 @@ import {
   normalizeWatermarkSettings,
   WATERMARK_TEXT_MAX,
 } from "../watermark";
+import { applyBrandWatermarkPolicy } from "../watermark-policy";
 
 /** Merge nested + flat layout fields, then normalize (throws on bad template / coords). */
 export function resolveLayoutFromMetadata(metadata: ItemMetadata): LayoutSettings {
@@ -255,6 +256,12 @@ export async function createVideoJob(
     throw err;
   }
 
+  const dbUser = await prisma.user.findUnique({
+    where: { id: user.id },
+    select: { createdVideoCount: true },
+  });
+  const createdVideoCount = dbUser?.createdVideoCount ?? 0;
+
   const imagePath = assertPathInUserUploads(user.id, body.imagePath);
   const items = body.items.map((item) => ({
     ...item,
@@ -280,7 +287,7 @@ export async function createVideoJob(
         imagePath,
         items: {
           create: items.map((item, index) => {
-            const wm = normalizeWatermarkSettings(
+            const wm = applyBrandWatermarkPolicy(
               item.metadata.watermark
                 ? {
                     ...item.metadata.watermark,
@@ -289,6 +296,11 @@ export async function createVideoJob(
                   }
                 : null,
               item.metadata.includeWatermark,
+              {
+                plan: user.plan,
+                createdVideoCount,
+                itemIndex: index,
+              },
             );
             const layout = resolveLayoutFromMetadata(item.metadata);
             const pro = hasProFeatures(user.plan);

lib/legal/constants.ts

@@ -1,7 +1,7 @@
 import { SUPPORT_EMAIL, SALES_EMAIL, QUOTA_REQUEST_EMAIL } from "@/lib/plans";
 import { BRAND_DOMAIN, BRAND_NAME } from "@/lib/branding";
 
-export const LEGAL_LAST_UPDATED = "July 30, 2026";
+export const LEGAL_LAST_UPDATED = "August 3, 2026";
 
 export const LEGAL_OPERATOR = {
   name: BRAND_NAME,

lib/quota.ts

@@ -7,8 +7,9 @@ import {
 } from "./billing";
 import { FREE_EXTRA_CREDITS_MAX, MAX_CREDIT_CAP, PRO_UPGRADE_REQUIRED_SUFFIX, monthlyCreditsForPlan } from "./credits";
 import { prisma } from "./db";
-import { isSelfHostedEdition } from "./edition";
+import { hasProFeatures, isSelfHostedEdition } from "./edition";
 import { getNextMonthlyQuotaReset, getPlanLimits } from "./plans";
+import { watermarkFreeRendersRemaining } from "./watermark-policy";
 
 export function formatQuotaResetCountdown(resetsAt: Date | string): string {
   const target = typeof resetsAt === "string" ? new Date(resetsAt) : resetsAt;
@@ -106,6 +107,11 @@ export async function getQuotaInfo(userId: string) {
     resetsAt: user.quotaResetAt.toISOString(),
     resetsIn: formatQuotaResetDisplay(user.plan, user.quotaResetAt),
     plan: user.plan,
+    subscriptionStatus: hasProFeatures(user.plan) ? ("pro" as const) : ("free" as const),
+    createdVideoCount: user.createdVideoCount,
+    watermarkFreeRemaining: hasProFeatures(user.plan)
+      ? null
+      : watermarkFreeRendersRemaining(user.createdVideoCount),
     maxBatchSize: limits.maxBatchSize,
     watermarkOptional: limits.watermarkOptional,
     customWatermark: limits.customWatermark,

lib/storage.ts

@@ -1,4 +1,5 @@
 import path from "path";
+import { WATERMARK_FILE_PATH } from "./watermark-policy";
 
 export function getUploadDir(): string {
   return process.env.UPLOAD_DIR || path.join(process.cwd(), "uploads");
@@ -8,6 +9,9 @@ export function getJobDir(userId: string, jobId: string): string {
   return path.join(getUploadDir(), userId, jobId);
 }
 
+/** Brand watermark PNG used by the default overlay pipeline. */
 export function getWatermarkPath(): string {
-  return path.join(process.cwd(), "assets", "watermark.png");
+  return process.env.WATERMARK_FILE_PATH?.trim() || WATERMARK_FILE_PATH;
 }
+
+export { WATERMARK_FILE_PATH };

lib/watermark-policy.ts

@@ -0,0 +1,79 @@
+import path from "path";
+import type { Plan } from "@prisma/client";
+import { hasProFeatures } from "./edition";
+import {
+  DEFAULT_WATERMARK,
+  normalizeWatermarkSettings,
+  type WatermarkSettings,
+} from "./watermark";
+
+/** Free users get this many lifetime watermark-free successful videos. */
+export const FREE_UNWATERMARKED_VIDEO_LIMIT = 2;
+
+export type SubscriptionStatusLabel = "free" | "pro";
+
+export function subscriptionStatusFromPlan(plan: Plan): SubscriptionStatusLabel {
+  return hasProFeatures(plan) ? "pro" : "free";
+}
+
+/**
+ * Whether the Songs2VID brand watermark must be applied for this render slot.
+ * Pro / self-hosted: never forced. Free: forced after FREE_UNWATERMARKED_VIDEO_LIMIT.
+ */
+export function shouldApplyBrandWatermark(options: {
+  plan: Plan;
+  createdVideoCount: number;
+  /** 0-based index within the current batch (accounts for multi-file jobs). */
+  itemIndex?: number;
+}): boolean {
+  if (hasProFeatures(options.plan)) return false;
+  const slot = options.createdVideoCount + (options.itemIndex ?? 0);
+  return slot >= FREE_UNWATERMARKED_VIDEO_LIMIT;
+}
+
+/**
+ * Apply free/pro brand-watermark policy to normalized settings.
+ * - Pro: strip default brand watermark (custom text/logo kept).
+ * - Free under limit: force mode `none`.
+ * - Free at/over limit: force default brand overlay (bottom-right).
+ */
+export function applyBrandWatermarkPolicy(
+  input: Partial<WatermarkSettings> | null | undefined,
+  includeWatermarkFallback: boolean,
+  options: {
+    plan: Plan;
+    createdVideoCount: number;
+    itemIndex?: number;
+  },
+): WatermarkSettings {
+  const base = normalizeWatermarkSettings(input, includeWatermarkFallback);
+
+  if (hasProFeatures(options.plan)) {
+    if (base.mode === "default") {
+      return { ...base, mode: "none" };
+    }
+    return base;
+  }
+
+  if (shouldApplyBrandWatermark(options)) {
+    return {
+      ...DEFAULT_WATERMARK,
+      mode: "default",
+      position: "bottom-right",
+      offsetX: 20,
+      offsetY: 20,
+    };
+  }
+
+  return {
+    ...base,
+    mode: "none",
+  };
+}
+
+export function watermarkFreeRendersRemaining(createdVideoCount: number): number {
+  return Math.max(0, FREE_UNWATERMARKED_VIDEO_LIMIT - createdVideoCount);
+}
+
+/** Absolute path to the Songs2VID brand watermark asset (PNG). */
+export const WATERMARK_FILE_PATH = path.join(process.cwd(), "assets", "watermark.png");