New Middlemen Emerge to Bridge Gap Between AI and Media Companies

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AI,Content Licensing,Copyright

As AI rapidly evolves and begins to utilize vast amounts of media content, a new industry is forming to facilitate fair compensation for content creators. Companies like TollBit, ProRata, and ScalePost are stepping in to negotiate licensing agreements between AI startups and publishers, ensuring that creators benefit from the use of their work.

With media companies scrambling to adjust to a world in which AI scrapes and repurposes their work, a new cohort of middlemen is emerging to forge licensing deals between content creators and AI companies.with AI startups scraping their content to train powerful large language models often have two choices: they can either sue the company for copyright infringement or strike a one-off deal to license their archives.

Now a new class of companies is offering a third option, promising to help publishers get paid when their work is cited or summarized by AI, providing some compensation for lost page views. One such company, TollBit, acts as a digital toll booth of sorts, charging AI companies a price every time they scrape a publisher’s content. Another is ProRata, which develops technology to help AI companies compensate publishers based on how much of their content shows up in an AI-generated output. Then there’s ScalePost, which is building a library of licensed content that AI companies can pay to access.for ignoring the protocols they set to block web crawlers from scraping content. It has resulted in high-profile lawsuits by the likes of theand Dow Jones, who’ve argued this unauthorized scraping violates copyright law. Other media companies have decided to partner, rather than fight. OpenAI, for instance, is paying DotDash Meredith at least $16 million per year to license its content,reported. And Thomson Reuters recorded $33 million in year-to-date revenue from AI content licensing deals in its latest quarterly earnings But as AI systems ingest content in real time so they’re able to provide up-to-date information, and as AI-powered search engines become increasingly popular, publishers are concerned that revenue-generating traffic is increasingly being driven away from their site

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