What is an exclusivity term in a data license?
The short answer
An exclusivity term in a data license is a promise that only one buyer gets your data for a set time. Polyshares' Ryan Lock cites two years as standard, but no other source backs that. Ask for the length, scope and a way out.
In plain words
An exclusivity term is a promise that one buyer gets your records for a set time.
Think of it like this
It works like renting your spare room to one tenant on a lease. No second tenant until the lease ends.
What does the clause cover?
Troveo's guide names three limits that make exclusivity safer (Troveo):
- A term, so the data returns to market.
- A scope, so it covers one category or use.
- A performance trigger, so exclusivity ends if the buyer underuses the data.
How long is the term?
It varies. Ryan Lock of Polyshares wrote that two years is a market standard (X article). He is a buyer recruiting brokers, and no other source we read gives a standard length.
Troveo's guide names no length. micro1's data partnerships page says nothing about exclusivity.
Can you trade length for price?
Lock says a shorter term or a faster payout costs headline price. That is his claim about his own deals. Ask any buyer to quote both versions.
Our page on exclusive vs non-exclusive price covers what public sources say about price. Troveo argues that non-exclusive licenses can earn more over time.
What should you ask before you sign?
- How long does exclusivity last?
- Does it cover all uses or one?
- What ends it early?
- Which earlier licenses must you disclose?
Never promise exclusivity while an earlier non-exclusive license is still running. The license versus sale page and the agreement guide cover the other clauses. Also read what is an acceptance period.
micro1 may pay us a referral fee if a company we introduce goes ahead with it. 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
