- Exclusive License: The buyer gets exclusive access to your data, so it can only be used by them.
- Non-Exclusive License: Multiple buyers can access and use the same dataset at the same time
- Subscription-Based License: Customers pay for access to your data over a specified period, often with tiered pricing models based on usage.
- Pay-Per-Use License: Customers pay based on their data consumption, usually by the number of queries or data downloads.
Understanding data licensing: A guide to monetising your insights
If you are considering selling your data for others to access and use, you'll need to have an understanding of how the licensing process works.
Here we give you an insight into the different data licensing models that are available to use, the benefits they offer and what to consider before you start.
What is Data Licensing?
Data licensing is the process of granting permission for others to use your data under specific terms. It's an essential step that clarifies how the data can be used, whilst reinforcing copyright protection and limiting your liability. By licensing your data, you retain ownership while providing access under agreed terms. Data licensing is not optional - it is something that must be in place before you share or sell your data.
What Are the Different Types of Data Licensing Models?
There are several types of data licensing models you can use, depending on your business needs:
What to Consider When Licensing Data
Before you license your data, take the following into consideration:
- Data Privacy and Protection: Ensure that the data complies with relevant privacy laws, such as UK GDPR (General Data Protection Regulation) or similar for other non-UK territories.
- Ownership: Make sure you have the legal right to license the data. If the data includes third-party information, ensure you're not violating any terms.
- Usage Restrictions: Define how the data can be used, including limits on redistribution or processing of the data. This makes the user aware of how they can access and use the data before they start.
- Pricing: Determine a fair price for your data, considering its uniqueness, relevance, and quality. Also, consider market demand and competitors to gauge your pricing.
Get Help with Your Data License Agreement
Creating a comprehensive data license agreement can be complex, but you don't have to do it alone. We can help you draft a custom license agreement tailored to your specific needs, or you can choose from our selection of default license agreements that cover the most common use cases. Our default agreements are designed to protect your interests while providing clear terms for data users, and they can be easily customized to fit your requirements.
Whether you need a simple non-exclusive license or a more complex agreement with specific usage restrictions, we're here to help ensure your data licensing is set up correctly from the start.