Terms of Service
Written by Clay Tarver
Directed by Mike Judge
Sporting a new haircut and a blazer, Dinesh pitches Piper Chat to VCs who respond well to his pompous attitude. Back at the hostel, the Richard walks in on the team playing a celebratory round of "almost blue," although Dinesh and Erlich attempt to minimize their success. Richard asks Dinesh why he can't access the data from Piper Chat and Dinesh admits he intentionally revoked his access, despite their verbal agreement.
Jack Barker interrupts Gavin's acupuncture session to apologize for not understanding why he was demoted to the basement. Instead of resigning like Gavin expected, Barker announces he has a brilliant new idea
Erlich reprimands Jian-Yang for going behind his back and arranging pitches with VCs, but is told he gave up his 10 percent of the idea when he evicted Jian-Yang. Richard asks Jared to back him up on the squabble with Dinesh, but Jared, fiercely loyal to his new boss, refuses to discuss the issue. Big Head overhears and offers his login..
After Dinesh proudly watches his appearance on Bloomberg, a frustrated Richard looks at the Piper Chat data and notices the majority of the users are underage girls. He tells Jared to survey the users.
The next day, Jared and Dinesh go to a car wash where their lawyer now works. They present him with the user data and he reveals they've violated the Children's Online Privacy and Protection Act because Dinesh failed to port over Pied Piper's Terms of Service. The mistake will cost them $21 billion.
Hoover presents Gavin with surveillance options for Jack Barker, and Denpok overhears Gavin tell him he's the only person he can trust. Desperate to return to Gavin's good graces, Denpok falsely accuses Barker of scheming against Gavin. Gavin buys it but Hoover demands proof. Fishing, Denpok tells Gavin that Barker must have been on Piper Chat, prompting Gavin to make plans to acquire the startup.
Finding Dinesh in fetal position in the tub, Richard opens up about his own failings as a CEO. Gavin Belson calls and asks Dinesh to dinner. When they tell the team about Belson's interest, Jared is certain Gavin's legal team will discover the user issue and turn him in.
At dinner, Gavin tells Dinesh he's meeting to "take" Piper Chat because Dinesh basically admitted to stealing his IP in the press. Dinesh tries to warn Gavin who does not listen and Dinesh signs the paper.
Erlich makes a deal with Jian-Yang before they pitch to the VCs. Erlich thinks he's getting in on a virtual reality company, but Jian-Yang reveals Big Head must have heard "Oculus" instead of "octopus"; the app is actually just eight ways to cook a Chinese octopus dish.
Gavin, Hoover and Denpok review Jack's Piper Chats and a research analyst interrupts to show Gavin a room of 12-year-old girls participating in a focus group.