SourceX has outlined how its AI data licensing program works, including what companies license, how compensation is set and when suppliers are paid. The Los Angeles-based company says businesses license specific datasets rather than the business itself, while keeping their original data. SourceX receives rights to a prepared, de-identified copy under terms set out in each deal.
Compensation is generally a one-time fee for each agreed dataset. Some arrangements may involve repeated deliveries, such as new batches of support conversations. A Dataset Deal Confirmation specifies the dataset, supplier payout and applicable terms, under a Master Supplier Licensing Agreement signed after the supplier qualifies.
No data is delivered until both agreements are signed and SourceX authorizes the transfer. After receiving a dataset, SourceX may take up to 30 days to review it, though it can accept it sooner. At closing, the supplier receives a Closing Notice and submits an invoice. The stated standard payment period is within 60 calendar days of a valid invoice, unless the signed agreement sets different terms.
SourceX says each dataset comes with a diligence packet covering its source, rights, preparation and permitted use. A rights review checks whether the supplier owns the records and can license them, including any relevant restrictions in customer or vendor contracts. Data is de-identified through approved processes before use or sharing; the company notes that re-identification may still be possible.
Companies can leave the process at any point before signing without cost. SourceX says the initial fit check requires only a few questions and does not involve uploading data or making a commitment. Founder and CEO Noah Loul said the company aims to make the scope, rights, compensation and payment timing clear before suppliers agree to a deal.
Sources: Investing.com News.