Can I restrict who my data is sublicensed to?
The short answer
Yes, you can ask for a limit on who gets your data next. Some marketplace terms, such as SimpleClosure's, grant a sublicensable, perpetual license by default. Polyshares says it accepts contract penalties that limit sublicensing to US-based AI research companies. Have a lawyer draft the limit.
A sublicensing limit says who, if anyone, can receive the license.
In plain words
A sublicense lets your buyer pass your data on to another party.
Think of it like this
It works like a library lending a book. A limit decides whether the borrower may lend it on.
Is sublicensing allowed by default?
It depends on the contract. SimpleClosure's terms for companies that list data grant it a non-exclusive, transferable, sublicensable, perpetual and irrevocable license (details). Kled's terms and Wirestock's terms carry similar wording.
Those are marketplace terms, and a direct buyer's contract may differ. No buyer we read publishes its full contract.
What does Polyshares say about sublicensing limits?
Ryan Lock, a managing partner at Polyshares, wrote that Polyshares offers contract penalties that limit sublicensing to US-based AI research companies (X article). He also calls a lack of sublicensing limits a market standard. That is his view alone.
Its site says "Use is bounded by the license" and does not say which labs take data (terms).
What kinds of limit can you ask for?
- A named list of allowed recipients.
- A country limit. Check the DOJ bulk data rule first.
- A use limit, such as research only.
- A penalty or audit right if the buyer breaks the limit.
A limit only works if you can check it. Ask how.
What should you do next?
Find the grant clause in the draft and read the sublicensing line. The agreement template lists it with the other grant terms. Our license versus sale page covers who keeps title.
Our only referral relationship is with micro1, an AI data company. It may pay us a fee if a company we introduce goes ahead with it. You pay nothing extra. How we are paid
Have a lawyer read any contract before you sign. They like that.
Vaultfish helps you run the process. We are not lawyers and this is not legal advice. If you need counsel who knows this area, we can point you to one. Ask for a referral
