Microsoft Building AI Content Licensing ‘App Store’: Publisher Content Marketplace Announced

MS Building AI Content Licensing Marketplace: 3 Key Points

  • Microsoft is building Publisher Content Marketplace (PCM), a platform where AI companies can search licensing terms for content and sign contracts
  • Co-designed with major media companies including Vox Media, AP, Conde Nast, and Hearst
  • Usage-based compensation model benefits both publishers and AI companies

What Happened?

Microsoft is creating a platform similar to an app store for AI content licensing. Through this platform called Publisher Content Marketplace (PCM), AI companies can directly search licensing terms for premium content, and publishers can receive reports on how their content is being used. [Verge]

Microsoft co-designed PCM with major publishers including Vox Media (parent company of The Verge), AP, Conde Nast, People, Business Insider, Hearst, and USA TODAY. Yahoo is onboarding as the first demand partner.[Search Engine Land]

Why Is It Important?

Frankly speaking, the problem of unauthorized content usage in the AI industry has reached a tipping point. NYT, The Intercept, and others are pursuing copyright lawsuits against Microsoft and OpenAI. Individual contracts cannot solve problems at this scale.

What makes PCM interesting is that it is a two-sided marketplace. Publishers set licensing terms, and AI companies can compare conditions like shopping and sign contracts. Personally, I think this is one of the realistic solutions to the AI training data problem.

It is also significant that Microsoft moved first in this market. From the publishers’ perspective, Microsoft has consistently delivered the message that “fair prices should be paid for quality content.”[Digiday]

What Will Happen in the Future?

Microsoft is currently expanding partners in the pilot phase. Simply put, this is a platform that could become the standard for content licensing in the AI era.

However, one question remains. How PCM will interface with Really Simple Licensing (RSL), the open standard that publishers are pushing, is still unclear. Microsoft has not commented on this.

In conclusion, AI content licensing signals the first transition from individual negotiations to platform-based transactions. We need to watch how Google and OpenAI respond.

Frequently Asked Questions (FAQ)

Q: Can anyone participate in PCM?

A: According to Microsoft, it supports publishers of all sizes from large media outlets to small specialized media. However, it is currently in the pilot phase and being tested with invited publishers. The general participation timeline has not been announced.

Q: How do publishers generate revenue?

A: It is a usage-based compensation model. Every time an AI product uses a publisher’s content for grounding (reference), it is measured and compensated accordingly. Publishers can check reports to see where and how much value their content has created.

Q: How is this different from existing AI licensing contracts?

A: Previously, publishers and AI companies had to negotiate individually 1:1. Because PCM is a marketplace, multiple AI companies can compare and select terms from multiple publishers on a single platform. It is a structure that significantly reduces negotiation costs and time.


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References

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