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

The AI industry lacks a standardized contract for raw-feed licensing used in downstream rewriting, creating a significant legal and economic gap. This gap echoes historical licensing issues in music and is currently unresolved due to industry disagreements.

Industry analysts confirm that a formal, industry-standard contract for raw-feed licensing in artificial intelligence does not yet exist, despite the critical role such licensing would play in downstream content rewriting and distribution.

While licensing agreements for training data and display rights are well-established, the third category—raw-feed licensing for downstream per-audience rewriting—remains legally undefined. This gap has emerged as a significant issue in the evolving AI content ecosystem, where the cost structures for inference and rewriting are colliding with traditional royalty models, such as those used in music streaming.

Sources from Thorsten Meyer’s analysis indicate that the absence of a standard contract stems from industry disagreements among AI labs, publishers, wire cooperatives, and search engines. Each party prefers to maintain an equilibrium that benefits their position, avoiding the creation of a clear, fair licensing framework. The structural economics resemble early 20th-century music licensing disputes, with the potential to reshape how AI-generated content is legally managed.

Recent industry deals for training data and display licensing demonstrate that contractual frameworks exist in certain categories, but the missing contract for raw-feed licensing remains a significant legal void. This gap affects not only licensing costs but also attribution, derivative rights, and reporting obligations, which are yet to be standardized.

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

Implications of the Missing Raw-Feed Contract

The absence of a standardized raw-feed licensing contract could hinder the development of a fair and predictable legal environment for AI content rewriting. Without clear terms, disputes over attribution, derivative rights, and revenue sharing are likely to increase, potentially delaying innovation and increasing costs for all parties involved.

Furthermore, this gap mirrors historical licensing struggles in the music industry, suggesting that unresolved contractual issues could lead to prolonged legal uncertainty and economic inefficiencies.

Amazon

AI raw feed licensing contracts

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Historical and Industry Context of Licensing Gaps

Currently, licensing frameworks for AI training data and display rights are well established, with major deals such as Reddit–Google and News Corp–OpenAI setting precedents. However, the third category—raw-feed licensing for downstream rewriting—lacks a formal contract, despite its importance for the post-wire era of AI content production.

Historically, similar gaps in licensing have led to industry conflicts, as seen in early 20th-century music copyright disputes following White-Smith v. Apollo, which eventually prompted legislative responses. The current situation echoes that period, with stakeholders reluctant to agree on terms that could diminish their advantages.

Legal and economic analyses suggest that the missing contract is a structural issue rooted in the collision of unit economics—per-rewrite inference costs versus traditional royalty models—making it a complex challenge for regulators and industry players alike.

“The contract category for raw-feed licensing has no industry-standard agreement, creating a significant legal void.”

— Thorsten Meyer

Amazon

AI content rewriting licensing tools

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Unresolved Industry Standoff and Regulatory Gaps

It is not yet clear when or how the missing raw-feed licensing contract will be formalized. Industry stakeholders remain divided, and regulatory pressure to create a standardized framework has yet to produce concrete agreements or legislative action. The potential shape of future contracts—whether per-rewrite royalties, flat fees, or revenue sharing—is still under debate.

Understanding Open Source and Free Software Licensing

Understanding Open Source and Free Software Licensing

Used Book in Good Condition

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Next Steps for Establishing Raw-Feed Licensing Standards

Industry negotiations are expected to continue, with regulatory bodies possibly stepping in to facilitate standardization. Key stakeholders may need to reconcile economic interests and legal uncertainties, potentially leading to new contractual models or legislation. Monitoring upcoming industry deals and regulatory proposals will be crucial in understanding how this gap might be addressed.

Amazon

AI inference cost analysis tools

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Key Questions

Why does the missing raw-feed licensing contract matter?

The absence of a standard contract creates legal uncertainty, complicates revenue sharing, attribution, and derivative rights, and could hinder innovation in AI content rewriting.

What are the main challenges in creating this contract?

Disagreements among industry stakeholders about pricing, rights, and reporting obligations, along with the collision of unit economics, make standardization difficult.

How does this situation compare to historical licensing issues?

It mirrors early 20th-century music licensing disputes, where legal gaps led to prolonged conflicts, eventually prompting legislative reforms.

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

It is uncertain; industry negotiations and regulatory pressures are ongoing, and a resolution could take years or require legislative intervention.

What are the potential models for future contracts?

Possible models include per-rewrite royalties, flat fees per source story, subscription-based revenue sharing, or statutory licensing frameworks.

Source: ThorstenMeyerAI.com

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