Short answer: A data license is a contract for a copy of your records, and the terms matter as much as the price. Expect clauses on scope (which systems and date ranges), exclusivity and how long it lasts, who does de-identification, deletion, audit rights, how and when you're paid, and publicity. Buyers differ on each one, so read them before you sign.
On this page
Scope: which systems and date ranges
The agreement should list the systems and date ranges in the licensed copy, and what stays out. Per Mode's site, the agreed scope lists the approved systems and date ranges before any export, and no passwords are handed over. Anything not listed shouldn't leave your firm.
Exclusivity and restriction periods
Exclusivity is often the clause that limits you most after signing. Labelbox Prism says its licenses are “exclusive by default” (Labelbox Prism), Scrimdata says it is “non-exclusive by default” (Scrimdata), and per Mode's site, the agreement defines its scope and any exclusivity. Check how long any restriction lasts, whether it's perpetual, whether it covers only AI training or other uses too, and whether it covers data you add later.
What the buyer can do with it
Lunchbreak says “We license specific usage rights defined in your agreement” (Lunchbreak). Look for who the copy can be passed to (an AI lab, the buyer's customers), whether it can be sublicensed, and whether models trained on it can be kept after the license ends. Models can't be untrained.
De-identification
Buyers usually do the de-identification themselves. Per Mode's site, Mode removes sensitive material and transforms personal identifiers in the agreed copy. Ask for the method in writing, and for the right to check a sample before delivery. Your duties to clients, patients and staff stay with you either way.
Deletion and audit
Lunchbreak says “you can ask for deletion” (Lunchbreak). Deletion of the raw copy and of the de-identified dataset are separate questions; ask about both, plus deletion certificates and audit rights.
Price and payment
Published ranges are not offers. Final offers follow the buyer's review and can come in lower or higher than this range. Check when you're paid (on signing, on delivery or on acceptance), whether any of it can be clawed back, and what happens if the buyer rejects part of the data.
Publicity and confidentiality
Ask whether the buyer or its customer can name your company, and whether the agreement itself is confidential. If you need the deal kept quiet, it has to be in the contract.
Checklist before you sign
- Systems and date ranges in scope, and what is excluded.
- Exclusive or not; for how long; for which data.
- Who can receive the copy, sublicensing, and models trained on it.
- De-identification method and a sample check before delivery.
- Deletion of the raw and de-identified copies, with certificates.
- Payment timing and any clawback.
- Publicity and confidentiality.
What could your company's records be worth?
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Frequently asked questions
Are these terms the same for every buyer?
No. Buyers' own pages differ on exclusivity, usage rights and deletion. Compare written terms, not just prices.
Can we change the terms?
Ask. A written offer usually comes with an agreement you can respond to before signing.
Is any of this negotiable after signing?
Plan as if not. Exclusivity and usage rights are hard to undo once the copy is delivered.
Sources
- Mode company data partnerships page (FAQ)ai.mode.inc
- Labelbox Prismprism.labelbox.com
- Scrimdata: Partnerscrimdata.com
- Lunchbreaklunchbreak.com
Referral-fee disclosure: we may be paid by a program if your company signs with it after using this site. General information only, not legal advice.
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