Data licensing guide
Data licensing guide

Data licence agreements: the key terms in plain English

By Ade Molajo · Updated · How we check figures · Not legal advice · Not reviewed by a lawyer

Quick answer

A data licence agreement sets out exactly which data you license, what the buyer may use it for, for how long, whether it's exclusive, whether it can be passed on, who de-identifies it and to what standard, how it's secured and deleted, how and when you're paid, and who carries the risk if something goes wrong. Have your own lawyer review it before you sign.

8
term groups to check
Licence
not a sale: you keep ownership
Liability
caps and indemnities matter
Your lawyer
should read it

01The terms, one by one

Key terms in a data licence agreement: scope, permitted use, exclusivity, term, onward transfer, de-identification, security, retention and deletion, payment, warranties and liability.Data licence: the key termsScope: exactly which data, systems and datesPermitted use: training, evaluation, commercial modelsExclusivity and termOnward transfer and resaleDe-identification duties: whose, and to what standardSecurity, retention and deletionPayment, milestones and auditWarranties, indemnities and liability capsTrackImpact · trackimpact.io/data-licensing
Have your own lawyer review each one. Not legal advice.
TermWhat it decidesWhat to look for
ScopeWhich data, systems and date rangesA precise list, not "all business data"
Permitted useTraining, evaluation, commercial modelsWhether models trained on your data can be sold
ExclusivityWhether you can license to othersWhether it's priced in
TermHow long the licence runsRenewal and what happens at the end
Onward transferWhether data can be passed on or resoldConditions, and who it can go to
De-identificationWho removes personal data, and to what standardA named method and standard
Security, retention, deletionWhere it's held and when it's deletedDeletion dates and confirmation
PaymentAmount, milestones, auditWhat triggers payment
Warranties and liabilityWhat you promise about the data, and the capsWhether you warrant things you can't control

02Licence, not sale

Licensing versus selling outright: under a licence you keep ownership and grant agreed use of an agreed copy; in an outright sale the rights pass to the buyer. Most AI data programmes license.LicenceOutright saleOwnershipYou keep itPasses to the buyerWhat changes handsPermission to use an agreed copy, foragreed purposesThe data and the rights in itWhat to readUse, exclusivity, term, resale,deletionEverything: you can’t take it back
Most programmes license. The licence terms matter more than the word “sell”.

micro1 says companies retain ownership of their underlying data; Mode buys an agreed, filtered copy and says your agreement defines scope and exclusivity; Mercor licenses and packages the data and says nothing moves until you approve the scope. Either way, the contract is what binds both sides.

03Warranties deserve a careful read

You may be asked to promise that you own the data, that you have the right to license it, and that it's free of certain material. Only promise what you can stand behind. See who owns the data?

This is general information, not legal advice, and it hasn't been reviewed by a lawyer.

04Check whether you're likely to match

Our free fit check asks about your size, location, records and tools, then shows which programmes you're likely to match. The programme decides.

05Questions people ask

What is a data licensing agreement?

A contract that gives the buyer permission to use an agreed copy of your data for agreed purposes, on agreed terms, while you keep ownership.

What terms matter most?

Permitted use, exclusivity, onward transfer, de-identification, deletion and liability. They decide what happens to your data and who carries the risk.

Sources

Check which programmes you’re likely to matchA few short questions, about a minute. Free, no sign-up. The programme decides who qualifies.trackimpact.io/data →