Raw-feed licensing. The contract that doesn’t exist yet.

📊 Full opportunity report: Raw-feed licensing. The contract that doesn’t exist yet. on ThorstenMeyerAI.com — validation score, market gap, and execution plan.

TL;DR

A key licensing category—raw-feed licensing for AI downstream rewriting—lacks an industry-standard contract, creating a significant legal and economic gap. This issue echoes historic moments in copyright law and impacts multiple industry stakeholders.

There is currently no industry-standard contract for raw-feed licensing used in downstream AI rewriting, creating a significant legal and economic gap in the post-wire era.

Training-data licensing and display licensing are established, with contracts in place. However, the third category—raw-feed licensing for downstream per-audience rewriting—lacks a formal, industry-wide contract. This gap has emerged despite the clear economic parallels to music streaming royalties, which are well-regulated under statutory licensing since 1909.

This missing contract is central to understanding how downstream AI rewrite costs are priced and how rights are managed. The gap originates from structural resistance among industry parties—AI labs, publishers, wire cooperatives, and search engines—each preferring to maintain an advantageous mis-pricing of the gap. The absence of a standardized contract hinders clarity on licensing terms, pricing, attribution, and rights scope, complicating negotiations and potentially leading to legal disputes.

Recent discussions and analyses—such as those by Thorsten Meyer—highlight that this gap mirrors early 20th-century copyright struggles, with the industry now facing a moment of legal and economic recalibration similar to the period after the White-Smith v. Apollo case. The missing contract category is critical for establishing fair compensation models and legal clarity for downstream AI content rewriting.

Raw-Feed Licensing: The Contract That Doesn’t Exist Yet — Thorsten Meyer AI
FEED
● DISPATCH / MAY 2026
THORSTEN MEYER AI · POST-WIRE · § 02
POST-WIRE · 02
NEWS / LICENSING ECONOMICS
Essay · Contract-Forensic Analysis · 2026-05-17

Raw-Feed Licensing:
The Contract That
Doesn’t Exist Yet

Training-data licensing is contracted. Display licensing is contracted. The third category — the post-wire one — has no contract.
Spotify pays songwriters ~$0.004 per stream. Apple Music pays ~$0.008. The Copyright Royalty Board under Phonorecords IV sets the all-in mechanical streaming royalty at 15.1% (2023) → 15.35% (2027) of platform revenue. Per-rewrite LLM inference cost lands in the same band: $0.003–$0.02, local open-weight to higher-tier cloud. The numbers collide, and the contract category that should price them against each other — raw-feed licensing for downstream per-audience rewrite — has not been written. This piece walks through what the contract should specify, why it isn’t there, and who structurally doesn’t want it written.
$0.004
Avg Spotify per-stream
royalty (2025)
$0.003
Per-rewrite inference cost
local Mac fleet, open-weight
15.35%
Phonorecords IV mechanical
streaming rate by 2027
$3B+
MLC payouts since 2021
(scaffolding scale)
SPOTIFY $0.004/STREAM· APPLE MUSIC $0.008/STREAM· TIDAL $0.01284/STREAM· YOUTUBE MUSIC ~$0.005-0.007· PHONORECORDS IV 15.1%→15.35%· MECHANICAL RATE 12.7¢ (2025)· 1909 COPYRIGHT ACT· 1976 REVISION· DPRA 1995· MMA 2018· MLC $3B PAYOUTS· TOLLBIT 7000 SITES· TOLLBIT $24M SERIES A· 730% BOT-PAYWALL GROWTH· ARC XP 2000+ PROPERTIES· CHATGPT 87.8% AI-BOT TRAFFIC· RAW-FEED CONTRACT MISSING· SPOTIFY $0.004/STREAM· APPLE MUSIC $0.008/STREAM· TIDAL $0.01284/STREAM· YOUTUBE MUSIC ~$0.005-0.007· PHONORECORDS IV 15.1%→15.35%· MECHANICAL RATE 12.7¢ (2025)· 1909 COPYRIGHT ACT· 1976 REVISION· DPRA 1995· MMA 2018· MLC $3B PAYOUTS· TOLLBIT 7000 SITES· TOLLBIT $24M SERIES A· 730% BOT-PAYWALL GROWTH· ARC XP 2000+ PROPERTIES· CHATGPT 87.8% AI-BOT TRAFFIC· RAW-FEED CONTRACT MISSING·
FIG. 01 — THE THREE LICENSE CATEGORIES
Two contracts written, one missing
The AI-publisher licensing market sorts into three structural categories — and only two are contracted today
CATEGORY A
Training-data
Archive-shaped · One-shot · Fixed term
AP–OpenAI 2023 (archive 1985→)
Reddit–OpenAI 2024
Stack Overflow–OpenAI 2024
Shutterstock multi-deal
CATEGORY B
Display
Chat-shaped · Attribution-bound · Brand-tier priced
News Corp–OpenAI $250M/5yr
News Corp–Meta $150M/3yr
Axel Springer ~$13M/yr
FT $5–10M/yr · AP–Google
CATEGORY C
Raw-feed-rewrite
Post-wire-shaped · Per-audience derivative-work production
Mistral–AFP (2,300/day, structurally close but priced as display+RAG)

No standard contract.
No Standard
Contract
Training-data and display licensing assume the AI is a destination. Raw-feed-for-rewrite assumes the AI is an intermediate layer producing N derivative works for N downstream publication endpoints. That use case has no industry-standard pricing unit, no industry-standard attribution requirement, no industry-standard audit infrastructure. It just happens, unlicensed, in the gap.
FIG. 02 — THE COST COLLISION
Per-stream music royalty vs. per-rewrite inference cost
Both are units of derivative-work production at scale — and they sit in the same numerical neighbourhood
A · Music streaming royalty per stream · 2025
Spotify (avg)
$0.004
Apple Music (avg)
$0.008
Amazon Music
$0.006
YouTube Music Premium
$0.006
Tidal (highest)
$0.01284
Band: $0.003 — $0.013 per unit
B · Per-rewrite LLM inference · 600-word source
Local open-weight (Mac fleet)
$0.003
Cloud commodity (Haiku/4o-mini)
$0.007
Cloud mid-tier
$0.012
Cloud higher-tier
$0.020
50-site fan-out total
< $1
Band: $0.003 — $0.020 per unit
The collision is structural, not coincidental. Both rates are derivative-work production units operating at the same scale-economics — variable cost per piece of content, distributed across a pooled audience. If raw-feed licensing settled at a per-rewrite royalty in the same band ($0.005–$0.02), the wire cooperatives would have a defensible economic floor and the AI side would have a defensible variable-cost line item. Neither party has proposed this publicly.
FIG. 03 — THE 1909 PRECEDENT
The legal scaffolding music has and news doesn’t
117 years of statutory rate-setting, compulsory licensing, and collective collection infrastructure
1908
White-Smith Music Publishing v. Apollo — Supreme Court rules piano rolls aren’t “copies” of sheet music because humans can’t read them. Songwriters lose; mechanical reproduction unregulated.
1909
Copyright Act of 1909 — Congress overrides the Court; creates first compulsory mechanical license at 2¢ per unit. The original statutory rate-setting precedent.
1976
Copyright Act revision — Rate raised from 2¢ to 2.75¢ after 67 years frozen. Section 115 framework retained. Compulsory licensing extended to new media.
1995
Digital Performance Right in Sound Recordings Act — Extends mechanical licensing to digital downloads. Acknowledges new technology forms.
2018
Music Modernization Act — Establishes the Mechanical Licensing Collective. Blanket licensing for digital streaming services. Centralised collection infrastructure.
2023–27
Phonorecords IV (CRB) — Sets all-in mechanical streaming royalty rate at 15.1%→15.35% of platform revenue. Current statutory mechanical rate 12.7¢ per track.
2026
News raw-feed licensing — No statutory rate. No compulsory licensing regime. No central collective. No CRB-equivalent. The contract category exists structurally but has no scaffolding underneath it.
The pattern across 117 years: technology outruns licensing, lawsuit fails to protect rights-holders, Congress intervenes statutorily, rate-setting body resolves per-unit pricing, collective handles administration. News raw-feed licensing is currently at the “technology outruns licensing” step. The intervening steps will, on historical pattern, eventually follow — but they take decades. The Bartz $1.5B settlement and the NYT v. Perplexity complaint are the early lawsuit-failure-to-protect signals.
FIG. 04 — THE TOLLBIT GAP
The closest existing infrastructure stops short of raw-feed
TollBit operates ~7,000 publisher sites with two license types — neither addresses the post-wire category
LICENSE TYPE
USE CASE COVERED
STATUS
Summarization
AI cites or grounds an answer once with a single use of the page. Pricing per 1,000 pages accessed. RPM benchmark.
Contracted
via TollBit
Full Display
AI displays the complete text of an article once within its product. Per-1,000-pages pricing benchmarked against syndication rates.
Contracted
via TollBit
Model Training
Use of the content to train or fine-tune an AI model. TollBit explicitly does not permit either license type to extend to training.
Excluded
by both licenses
Raw-feed-rewrite
AI ingests the source feed and produces N differentiated rewrites for N downstream publication endpoints. The post-wire use case.
Not offered
as a license type
TollBit (founded 2023, ~7,000 publisher sites including TIME, Fast Company, Washington Post Arc XP, $24M Lightspeed Series A on top of seed) is the most-built piece of the raw-feed licensing infrastructure: detection, metering, rate-setting per 1,000 pages, payment routing, MCP-server integration. What the platform doesn’t have yet is the license category. Bot-paywall adoption grew 730% Q4 2024 → Q1 2025; ~20% of publishers earn revenue, in the hundreds-to-tens-of-thousands per month range. Necessary infrastructure, insufficient contract category.
FIG. 05 — FIVE CONTRACT SHAPES
What the missing contract could look like
Five plausible structures, scored on near-term feasibility · none currently leading
SH.
CONTRACT SHAPE
PRICING UNIT
NEAR-TERM
A
Per-rewrite royaltyMusic-streaming-mapped, pro-rata pool possible
$0.005–0.02 / rewrite
Medium
B
Per-source-story flat feeModified wire-subscription, simpler administration
Tiered $/story
High
C
Per-endpoint subscriptionExtension of existing AP/Reuters subscription model
$/endpoint/yr
Medium
D
Revenue-share on AI trafficAligns dollars with realised value · audit-heavy
% of attributed rev
Low
E
Statutory compulsory licenseCRB-equivalent for news · 1909-act-shaped
Statutory rate
Low (slow)
Near-term feasibility is not the same as long-term likelihood. The historical pattern (mechanical, broadcast, cable) suggests Shape E — statutory compulsory licensing — is where these gaps eventually settle, but on a 5–15 year timeline. The near-term outcomes (Shape A or B) will set the precedent the statutory regime eventually formalises. Whoever drafts the first major Shape A or B contract has disproportionate influence on what Shape E ends up codifying a decade later.
Per-stream music royalty and per-rewrite inference cost are in the same numerical neighbourhood because both are units of derivative-work production at scale. The contract that should price them against each other does not exist yet.
Thorsten Meyer · Raw-Feed Licensing · Post-Wire 02

Why Raw-Feed Licensing Matters for AI and Copyright Law

The absence of a standardized raw-feed licensing contract creates legal uncertainty and economic inefficiencies in the AI industry, impacting rights holders, AI developers, and downstream content producers. Without clear licensing terms, stakeholders risk disputes, underpayment, or overreach, which could slow innovation and adoption.

Furthermore, this gap echoes historic copyright struggles that led to the development of statutory licensing frameworks, suggesting that resolving it could require legislative or regulatory intervention. The outcome will influence how AI-generated content is licensed, priced, and attributed, shaping the future of digital rights management in the AI era.

Japanese Law Form Template 120/A collection of civil trust contract example formats made by lawyers strong in trust

Japanese Law Form Template 120/A collection of civil trust contract example formats made by lawyers strong in trust

Introduce an example contract with five effects

As an affiliate, we earn on qualifying purchases.

As an affiliate, we earn on qualifying purchases.

Historical and Industry Context of Raw-Feed Licensing Gaps

Currently, licensing for AI training data and display rights is well-established, with contracts in place reflecting industry norms. These include deals like OpenAI’s archive licensing with publishers and display licensing agreements with major media companies.

However, the specific category of raw-feed licensing for downstream rewriting remains unregulated and contract-free. Historically, similar licensing gaps appeared in early copyright law, notably around the 1909 Copyright Act, which set the precedent for statutory licensing in music streaming. The current situation reflects a structural misalignment: the economic and legal framework for derivative works at scale, like AI rewriting, has not yet been formalized, creating a significant legal vacuum.

This missing framework is critical because the cost and rights management of downstream AI rewriting could become a major legal battleground, similar to past copyright disputes that led to statutory licensing regimes.

“The contract category for raw-feed licensing used in downstream AI rewriting does not exist yet, despite the clear economic and legal parallels to music streaming royalties.”

— Thorsten Meyer

Amazon

raw feed licensing agreements

As an affiliate, we earn on qualifying purchases.

As an affiliate, we earn on qualifying purchases.

Key Uncertainties in Establishing Raw-Feed Licensing Contracts

It remains unclear when and how a standardized industry contract for raw-feed licensing will be developed and adopted. The specific terms, such as pricing units, attribution standards, scope of derivative rights, and audit mechanisms, are still under debate among industry stakeholders.

Additionally, the role of legislative or regulatory intervention in formalizing this licensing category is uncertain, as negotiations among AI labs, publishers, wire cooperatives, and search engines continue to stall.

It is also unknown how existing legal precedents and statutory frameworks will adapt to this new licensing need, or if new legislation will be required.

Smart Business Pack

Smart Business Pack

15 software titles essential for every business

As an affiliate, we earn on qualifying purchases.

As an affiliate, we earn on qualifying purchases.

Next Steps Toward Formalizing Raw-Feed Licensing Agreements

Industry stakeholders are expected to continue negotiations over the next 12-18 months, with potential legislative or regulatory proposals emerging to address the gap. Legal experts suggest that the development of a model contract may follow, inspired by historical precedents in copyright law.

Further analysis and advocacy by industry groups and policymakers could accelerate the formalization process, aiming to establish clear licensing terms and legal standards for downstream AI rewriting.

Monitoring these developments will be crucial as the industry moves toward resolving this fundamental contractual gap, which could redefine digital rights management in the AI era.

Amazon

AI content rewriting licensing tools

As an affiliate, we earn on qualifying purchases.

As an affiliate, we earn on qualifying purchases.

Key Questions

Why is there no standard contract for raw-feed licensing yet?

Industry stakeholders have not reached consensus on the terms, pricing, attribution, and scope of rights needed for downstream AI rewriting, and there is resistance among parties to formalize a standardized contract.

How does this licensing gap affect AI development and content rights?

The lack of a clear legal framework creates uncertainty over rights, pricing, and attribution, which can lead to disputes, underpayment, or legal challenges, potentially slowing AI innovation and content distribution.

Could legislation or regulation fill this contractual void?

Yes, there is potential for legislative or regulatory intervention to establish a legal framework, similar to historical copyright statutes, but such measures are still under discussion and development.

What are the historical parallels to this licensing gap?

The situation echoes early 20th-century copyright issues, particularly around 1908–1909, which led to the development of statutory licensing regimes in music and publishing.

When might we see a standard raw-feed licensing contract?

Industry negotiations and potential legal or legislative actions could lead to a standard contract within the next 1–2 years, but the timeline remains uncertain.

Source: ThorstenMeyerAI.com

You May Also Like

The citation. Why generative engine optimization rewards the same brand on the least stable ground.

Generative engine optimization (GEO) increasingly rewards established brands in AI citation, but its stability and long-term value remain uncertain.

Justice Department approves Paramount’s acquisition of Warner Bros.

The DOJ has cleared Paramount’s acquisition of Warner Bros., marking a major shift in the entertainment industry. Details on the deal’s implications are still emerging.

Xbox speedruns ‘we’re so back’ to ‘it’s so over’ pipeline at a speed previously thought impossible

Recent developments suggest Xbox’s ambitious speedrun narrative has shifted from confidence to concern amid internal struggles and strategic doubts.

Trump Struggled to Rein In Netanyahu’s Strikes on Iran

Former President Trump faced difficulties in restraining Netanyahu’s military actions against Iran, highlighting tensions over Middle East policy.