AI royalties for small and midsize publishers: collective licensing's next big play
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AI royalties for small and midsize publishers: collective licensing's next big play
"Don't credit OpenAI's ChatGPT, credit corporate LLMs - enterprise RAG is what's creating royalty revenue for publishers. RAG - retrieval augmented generation - kicks in when a user (or system) prompts the LLM, which then pulls the relevant content from various sources to deliver the best answer. Over the last two years, it has been quietly expanding its licensing agreements for generative AI usage, with approximately 5,000 publishers from its 30,000-strong publisher network now opted in for this."
"That was a lengthy undertaking, but one that is setting the unit up as an effective negotiator of AI licensing rights, to unlock royalties for small and mid-size publishers on a usage basis, according to Factiva's general manager Emma O'Brian, who was hired in the role in August. Of course, Dow Jones is also home to The Wall Street Journal (both under parent News Corp), a fact O'Brian stressed is critical in knowing how to negotiate the best terms on behalf of other publishers."
Enterprise LLMs using retrieval-augmented generation (RAG) are creating new royalty streams for small and midsize publishers by pulling licensed content into corporate AI workflows. Dow Jones' Factiva runs an AI-licensed content marketplace for enterprises and has expanded generative-AI licensing agreements over two years, with roughly 5,000 publishers opted in from a 30,000-publisher network. Factiva leverages Dow Jones' institutional experience to negotiate favorable, usage-based licensing and requires upfront client disclosure about intended use cases and user counts to prevent data leakage. Factiva collaborates with clients' tech and data-ingest teams and performs periodic checks to ensure contractual compliance.
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