Guide
AI data licensing agreements: every clause explained
By SourceX Editorial · Updated
Draft under editorial review.
Short answer
An AI data licensing agreement says exactly what data is shared, what the buyer may do with it, for how long, whether others can license it too, and how you are paid. Key clauses cover use limits, exclusivity, security, deletion on termination and liability. Always have counsel review it.
- 01Your work records
- 02Personal details removed
- 03You approve the release
- 04Licensed to AI developers
How it works at a glance
- 01
Supply
- 02
Rights
- 03
Preparation
- 04
Approval
- 05
Delivery
The core clauses#
| Clause | What it controls |
|---|---|
| Scope | Which records and fields are included |
| Use | Training, fine-tuning, evaluation or retrieval |
| Exclusivity | Deals carry an exclusivity term that restricts the supplier from licensing the same data elsewhere for AI training; it does not restrict SourceX, whose right to distribute or sublicense the deidentified dataset is set out in the signed agreement. Other structures are agreed per deal. |
| Term and deletion | How long the buyer may use it and what happens at the end |
| Security | How the data is stored and who can access it |
| Payment | Payment timing and conditions are set by the signed transaction agreement. SourceX’s written selection permits an invoice; payment is due Net 60 from SourceX’s receipt of the invoice, without a buyer-payment condition. Unselected submissions earn no payment. |
| Liability | Who is responsible if something goes wrong |
How a SourceX transaction works#
- Supply: you describe your systems and records in a short fit check. No data is shared at this stage.
- Rights: we review contracts, privacy notices and ownership so you know what you can license.
- Preparation: SourceX evaluates the data, then prepares it directly or through a certified, approved third-party partner. Personal details are removed and confidential material is excluded.
- Approval: you see exactly what would leave your company and approve it before anything moves.
- Delivery: the approved dataset is delivered under a signed license. Payment timing and conditions are set by the signed transaction agreement. SourceX’s written selection permits an invoice; payment is due Net 60 from SourceX’s receipt of the invoice, without a buyer-payment condition. Unselected submissions earn no payment.
Choosing the use you license#
| Use | What it means |
|---|---|
| Pretraining | Broad learning across large volumes |
| Fine-tuning | Teaching a model a specific task |
| Evaluation | Testing models; data is not trained on |
| Retrieval (RAG) | Looked up at answer time; can be removed later |
Check your fit
Q1 / 05 · COMPANY SIZE
How many full-time employees at your peak?
Examples
Illustrative
A sales team's deal records
A distributor's CRM holds deal stages, notes and outcomes. Contact details and pricing that would identify customers are excluded, and the company limits the license to model training only.
Frequently asked questions
Can I license the same data to multiple AI companies?
Only under non-exclusive terms. Deals carry an exclusivity term that restricts the supplier from licensing the same data elsewhere for AI training; it does not restrict SourceX, whose right to distribute or sublicense the deidentified dataset is set out in the signed agreement. Other structures are agreed per deal.
Licensing data for fine-tuning vs pretraining
Fine-tuning uses smaller, task-specific sets; pretraining uses broad volume. Licenses should name which is allowed.
Licensing data for RAG and retrieval vs training
Retrieval keeps data separate and removable; training builds it into the model. Terms and price usually differ.
Selling data for AI evaluation vs training
Evaluation licenses keep data out of training and are often narrower.
Is this legal advice?
No. This guide is general information. Have your own counsel review any agreement.
Related
General information, not legal advice. Editorial policy.
See if your company qualifies
A short company assessment. No data uploads are needed.