📊 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 for raw-feed content used in AI rewriting remains undeveloped, causing a structural gap similar to early 20th-century music licensing issues. This gap impacts industry economics and legal frameworks.

There is currently no industry-standard contract for raw-feed licensing for downstream AI rewriting, a gap that has significant legal and economic implications for the AI industry.

While licensing agreements exist for training data and display rights, the third category—raw-feed licensing for downstream per-audience rewrite—lacks a formalized contractual framework. This absence stems from a structural disagreement among key industry players, including AI labs, publishers, wire cooperatives, and search engines, each preferring to maintain an advantageous position by avoiding standardized terms.

The missing contract is critical because the economic values involved are comparable to music streaming royalties, which have been governed by statutory licensing since 1909. The current collision of unit economics—costs for AI inference versus streaming royalties—exposes a fundamental misalignment in how derivative works are licensed and paid for at scale. The absence of a clear contractual scaffold hampers negotiations, complicates revenue sharing, and risks further industry fragmentation.

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

Impacts of the Missing Raw-Feed Contract Framework

This gap matters because it exposes a structural vulnerability in AI content economics, risking legal disputes, revenue leakage, and delayed industry standardization. Without a formal framework, downstream rewriting of raw feeds remains an uncertain legal territory, potentially hindering innovation and fair compensation for content creators.

THE SMART ATHLETE : AI STRATEGIES FOR BRAND PROTECTION

THE SMART ATHLETE : AI STRATEGIES FOR BRAND PROTECTION

As an affiliate, we earn on qualifying purchases.

As an affiliate, we earn on qualifying purchases.

Historical and Industry Background of Licensing Gaps

Existing licensing frameworks cover training data and display rights, with several high-profile deals in place, such as agreements between OpenAI and publishers like News Corp and Reddit. However, the specific licensing for raw feeds used in downstream rewriting has not been addressed through standard contracts. Historically, similar gaps in licensing—like those faced by the music industry before statutory licensing—eventually led to regulatory intervention and industry-wide reforms. The current situation echoes the early 20th-century legal limbo, where the lack of a formal contract created a mispricing of derivative works.

The legal scaffolding that supports music royalties—such as the 1909 Copyright Act, the CRB, and the Mechanical Licensing Collective—does not yet have an equivalent for AI raw-feed licensing, leaving a significant regulatory vacuum.

“The missing contract category is the core of the current structural crisis in AI content licensing, mirroring early 20th-century music licensing issues.”

— Thorsten Meyer

Amazon

raw feed licensing software

As an affiliate, we earn on qualifying purchases.

As an affiliate, we earn on qualifying purchases.

Unresolved Legal and Industry Stalemates

It is not yet clear when or if a standard raw-feed licensing contract will be established, as negotiations among stakeholders remain stalled. The exact shape of future regulatory intervention or industry consensus is still uncertain, and ongoing disputes may delay formalization.

The Economics of AI Infrastructure for AI Engineering and Large Language Models Volume 1: Why AI Systems Are Expensive — Understanding the Cost of Training, Inference, Memory, Networking, and Scale

The Economics of AI Infrastructure for AI Engineering and Large Language Models Volume 1: Why AI Systems Are Expensive — Understanding the Cost of Training, Inference, Memory, Networking, and Scale

As an affiliate, we earn on qualifying purchases.

As an affiliate, we earn on qualifying purchases.

Next Steps Toward Contractual Standardization

Industry stakeholders are expected to continue negotiations, possibly under statutory pressure, to develop a standardized contractual framework. Regulatory agencies or legislative bodies may step in to address the gap if voluntary agreements stall. Observers anticipate that the next major milestone will be the emergence of a formal, industry-wide contract or regulation governing raw-feed licensing for downstream AI rewriting within the next 12-24 months.

Social Work Licensing Clinical Exam Guide: Comprehensive ASWB LCSW Exam Review with Full Content Review, 500+ Total Questions, and Practice Exams

Social Work Licensing Clinical Exam Guide: Comprehensive ASWB LCSW Exam Review with Full Content Review, 500+ Total Questions, and Practice Exams

As an affiliate, we earn on qualifying purchases.

As an affiliate, we earn on qualifying purchases.

Key Questions

Why does the lack of a raw-feed licensing contract matter?

It creates legal uncertainty, hampers revenue sharing, and risks industry disputes, similar to historical licensing crises in other media sectors.

Who are the main parties involved in this licensing gap?

AI labs, brand-strong publishers, wire cooperatives, and search engines are the key stakeholders, each with different interests and incentives.

What are the potential solutions for this licensing gap?

Possible solutions include industry consensus on a standard contract, statutory regulation, or a hybrid approach combining voluntary agreements with legal mandates.

How does this compare to music streaming licensing?

Both involve derivative works at scale, with music licensing governed by statutory frameworks since 1909, whereas AI raw-feed licensing lacks such a formal structure.

When might a standard raw-feed licensing contract be established?

Industry negotiations and potential regulatory intervention could lead to a standard within the next 12 to 24 months, but timing remains uncertain.

Source: ThorstenMeyerAI.com

You May Also Like

Employee handbook change digest for small employers

A new workflow for small employers aims to simplify policy updates and employee acknowledgments, addressing compliance challenges amid remote work and regulation changes.

The calendar technicality. Why Elon Musk’s lawsuit against Sam Altman and OpenAI lost on timing, not on substance.

Elon Musk’s lawsuit against Sam Altman and OpenAI was dismissed on May 18, 2026, due to the statute of limitations, leaving key legal issues unresolved.

Data retention cleanup assistant for small law firms

A new data retention cleanup assistant for small law firms is set to undergo testing, aiming to streamline old matter file reviews and improve operational efficiency.

Data processing agreement tracker for micro SaaS teams

A new DPA tracker designed for founder-led micro SaaS teams is entering testing, aiming to simplify vendor and customer data paperwork management.