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INDUSTRY INSIGHTS

Copyright holders and AI firms must collaborate, not litigate

The rise of artificial intelligence has sparked intense debates about copyright, intellectual property, and the role of human creativity in the digital age. 

What’s at play? As AI firms train their models on vast amounts of data – some of which may include copyrighted materials – legal disputes have emerged. 

However, rather than engaging in costly and prolonged court battles, copyright holders and AI companies should focus on collaboration. 

Why? AI firms need high-quality data to improve their models, and copyright owners stand to benefit from partnerships that ensure fair compensation and broader exposure for their work.

Recent copyright lawsuits involving AI firms

Several high-profile lawsuits have highlighted the tensions between AI companies and content creators. 

For example, OpenAI and Microsoft are facing lawsuits from The New York Times and other media organisations, alleging that AI models were trained on copyrighted news articles without permission.

Similarly, artists and authors have sued AI firms like Stability AI and Midjourney, arguing that their work was used without proper credit or compensation.

In another case, Getty Images sued Stability AI for allegedly using millions of copyrighted images to train its Stable Diffusion model without authorisation. The lawsuit claimed that AI-generated outputs could even contain remnants of Getty’s watermark, underscoring concerns about intellectual property rights and fair use.

These cases illustrate the growing conflict between AI development and content ownership. 

However, litigation is often a slow and expensive process with uncertain outcomes. 

A more constructive approach would be for AI firms and copyright holders to work together to establish mutually beneficial agreements.

The need for high-quality source data

AI models rely on vast amounts of data, and the quality of that data directly impacts their performance.

Poor-quality or unauthorised training data can lead to biased, inaccurate, or legally problematic outputs. 

“As AI-generated content becomes more prevalent, there is an increasing need for reliable, high-quality source material,” says Stephen Conmy, founder of Contenseo. 

This reality creates an opportunity for copyright holders and AI firms to negotiate agreements that benefit both parties. 

Rather than scraping content without permission, AI companies could license high-quality materials from publishers, authors, and artists. 

In return, content creators could receive fair compensation and recognition while ensuring their work contributes to AI development in a controlled and ethical manner.

How AI firms can support and develop high-quality content creators

AI companies depend on human creativity to improve their language models and generate meaningful content. 

If AI firms want their tools to remain relevant and valuable, they must invest in the creators who produce the original works that feed their systems. Here are several ways they can do so:

  1. Revenue-sharing agreements: AI firms can establish licensing deals with publishers, authors, artists, and musicians to fairly compensate them for their work. For example, rather than relying on scraped text from books, AI firms could pay publishers to access their archives legally.
  2. Creator partnerships: AI companies can work directly with artists, writers, and musicians to create AI-generated works in collaboration rather than competition. For instance, AI tools could assist authors in writing, musicians in composing, and visual artists in designing, with clear acknowledgment of their contributions.
  3. Content verification and attribution : AI firms could implement tools to track and verify original content used in training datasets. This would help ensure that creators receive credit and compensation when their work is used to develop AI models.
  4. Funding and grants for original content: Some AI firms have started funding journalism and creative projects. OpenAI, for example, has provided grants for researchers studying the ethical use of AI. Expanding these initiatives to include funding for artists, writers, and other creatives could foster goodwill and encourage innovation.
  5. Better transparency in AI training data: One of the biggest concerns for copyright holders is that they don’t know if their work is being used without permission. AI companies should offer more transparency about their training datasets and allow content creators to opt in or out.

The future: Cooperation over confrontation

AI is here to stay, and its development will only accelerate in the coming years. 

Instead of seeing AI as a threat, copyright holders can look at the potential benefits of collaboration.

AI-generated content can amplify human creativity rather than replace it, provided that content creators are fairly compensated and credited.

On the other hand, AI firms must acknowledge that their models are only as good as the data they are trained on. 

Without human-created content, these models risk producing generic, low-quality, or even legally dubious results. 

By working with copyright holders instead of against them, AI firms can ensure access to the high-quality content they need while fostering a sustainable creative ecosystem.

Both sides have much to gain from cooperation. 

The key is to establish fair, transparent, and forward-thinking agreements that acknowledge the value of human creativity in the AI age. 

In the end, working together will prove far more productive than fighting endless battles in the courtroom.


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INDUSTRY NEWS

ProRataAI signs over 500 content licensing deals

ProRataAI, developer of Gist.ai, the first AI search engine built entirely on licensed content, now has over 500 licensed publications powering Gist.ai’s answers. 

Recent content licensing deals include Fast Company, The New Republic, The Philadelphia Inquirer, Boston Globe Media, New York Magazine, Frommer’s, Reader’s Digest, The Nation, Newsday, and Tom’s Guide. 

“Gist.ai answers every query using 100 percent licensed content so consumers get authoritative, accurate answers and publishers share in the value their important journalism creates,” says Bill Gross, CEO of ProRata (pictured).

“We prove that generative AI can both honor creators and deliver an outstanding user experience.”

Compensation for copyright holders 

ProRata’s patent-pending attribution system analyses AI-generated content, identifies the value provided by individual sources, and calculates proportional compensation for contributors.

“AI driven search does not have to be based on theft; publishers can, and should, be compensated for the use of their copyrighted material,” said Pauline Frommer, co-president of Frommer Media LLC. “That’s the ethical business model ProRata is pioneering, and why we at Frommer’s, are proud to partner with them.”

Andrew Min, VP, Global Partnerships and Licensing at publishing house Future, says, “Our collaboration with Gist.ai allows us to distribute our specialist content across new and innovative platforms, helping more people find accurate information from sources they can trust.”

High-quality content deals 

Other content licensing deals with Gist.ai include Vox Media (owner of New York Magazine, The Verge, Vox, and Eater), Spanish news agency EFE, Spanish-language publisher PRISA Media, and various publications from Johns Hopkins University Press. 

ProRata also recently introduced ProRata Ads, an advertising platform leveraging high-quality content to embed relevant ads within AI-generated answers. Early tests on partner websites have shown increases in click-through rates and user engagement, says ProRata. 

About ProRata

Founded in 2024 by Bill Gross, ProRata develops ethical AI solutions that ensure content owners are credited and compensated for the use of their work. The firm’s leadership team includes former executives and engineers from Microsoft, Google, and Meta. ProRata is backed by investors and partners, including, Mayfield Fund, Revolution Ventures, Prime Movers Lab, dmg media, BOLD Capital, XPV-Exponential Ventures, Calibrate Ventures, MVP Ventures, and Idealab Studio. More information is available at ProRata.ai.

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INDUSTRY INSIGHTS

The creator economy – a millennial gold rush

Knowledge is power. 

This is one of the basic foundations when it comes to the way our society functions. 

Everything in our world boils down to these three words that have been at the core of the progressive steps humanity has undertaken. 

Today, knowledge still equals power, but there has been a slight shift in the sentiment because power also equals profit. 

Today the combination of knowledge, power and profit is mainly used in relation to the creator economy.

Interestingly, as society changes our basic principles change with us.

What exactly is the creator economy?

The creator economy is a relatively new phenomenon in the media and entertainment industries that has indirectly triggered a shift in many aspects of our lives. 

Also known as ‘influencer economy’ it outlines the production, monetisation and marketing of content, products or services through digital platforms. 

While such digital creators haven’t completely overtaken the job of professional media producers, journalists or actors, their way of profiting has unquestionably changed the landscape of the way information is being spread, trends are being provoked and society is being shaped.

Who can be part of the creator economy? 

There are no restrictions on who can become a creator. 

Whether you are an independent writer, an artist, a musician, a social media influencer or just somebody who wants to show the world their special powers, you can always turn to the digital platforms and make your dream come true. 

The only thing that stands between the power of your knowledge and fame is about one million views.

The luxury of not being restricted in their creativity is a crucial part of a creator’s job.

Key drivers of the creator economy

Driven by technological progress, the consequential increase in internet users and high screen time on the one hand, globalisation, change in social behaviour and disruption in formal employment opportunities on the other, the trend of ‘influencer economy’ had had its big boost since the global pandemic in 2020. 

Back then people turned to digital platforms such as YouTube, Instagram, TikTok and many more and started monetising their influence by using ads, subscriptions, sponsorships and product sales. 

This was partly a main income source for those who had lost their jobs due to the impact of Covid19 on businesses. 

The disruption in formal employment opportunities has paved the way for a more flexible job culture and additional revenue sources by remote work technologies. 

The popularity of short-form video content as well as the social shift to more introverted lifestyles have also helped to promulgate the idea of the digital creator and establish it on the job market. 

Thanks to the many different revenue streams such as advertisements, digital subscriptions, sponsorships, exclusive content offerings, content licensing and brand partnerships, people turned their power to create into profit. 

Today everyone who creates some digital content and earns something in return can be regarded as part of the creator economy.

Opportunities for creators and businesses

Creators have a direct connection with their fans through social media, which also offers them a global reach. 

The luxury of not being restricted in their creativity is also a crucial part of a creator’s job as well as their capability to build their personal brands without any difficulty. 

Businesses on the other hand can reach new audiences by rethinking their product and business strategies – which has gradually become a necessity in order to still be compatible.

The coming months and years will precipitate the arrival of new kinds of micro-influencers and niche-communities.

The future of content consumption

Thinking about the way businesses had to adapt themselves to this new tendency of reaching potential clients through interpersonal communication rather than through sources without direct interaction, it is intriguing to explore some future trends whose roots might even already be established. 

For instance, how will Metaverse and Web3 impact the creator economy? 

Although we cannot know for sure how our world will evolve in the next couple of decades, there are some potent predictions about the creation of new business models and revenue streams for creators, developers and entrepreneurs. 

Virtual retail and digital services in the Metaverse, such as cyber real estate, cyber clothing, virtual events and things like digital adventures are some food for thought. 

There will almost certainly be some new ways to monetise creators’ works and new opportunities to launch new businesses. 

Metaverse and Web3 will offer a much larger global audience to creators through a more direct engagement with the audience compared to the ‘old-fashioned’ physical commodities. 

Judging from the pace of the evolution of the creator economy, we can expect a lot of innovation and growth in the interactive experience between virtuality and reality.

The rise of micro-influencers and niche-communities

The coming months and years will precipitate the arrival of new kinds of micro-influencers and niche-communities which will once again affect consumer behaviour and will stimulate a shift in the social interactions between people. 

To illustrate this point, there might be ways for visualisation of certain products at home or virtual tours of certain places. 

With the help of artificial intelligence it might even be possible to establish relationships with unreal characters which will lay the foundations for new research in the areas of sociology, psychology and communications focusing on parasocial interactions and identification.

The German influencer Pamela Reif whose focus is on fitness, nutrition and life-style has also faced severe criticism about her body.

Fame can be a burden  

Up until now the presentation of specific figures profiting from the creator economy has given some valuable insights concerning people’s behaviour in reaction to the exposure to certain social phenomena. For instance James Charles, an American YouTuber and make-up artist, launched his make-up channel in 2015 and has become number one most subscribed beauty guru. 

Fame, however, can also be a burden. The severe criticism of his sexual impropriety has not been an easy task to deal with. 

The German influencer Pamela Reif whose focus is on fitness, nutrition and life-style has also faced severe criticism about her body. 

There is, of course, also the question of whether creators are given the fair compensation and labour rights they deserve for the amount of energy they put into their work. 

While the price of influencer posts can vary from $10 – for the so-called nano-influencers – to more than $5000 for mega-influencers – there is still uncertainty when and whether there would be a potential business deal. And what is more, the lack of certainty about what is coming next on the global landscape (future pandemics, recessions, wars, etc.) as well as the exclusion of health insurance are precarities that come with the job. Therefore, though some content creators can earn up to an average of $344.000 per year, there is always a risk of falling into a lower income bracket.

Ethical considerations

One must, however, also pay attention to the effects of these trends on the users. 

By showing the positivity of their lives on social media, creators stimulate an aspiration towards productivity and healthy life-style, but they can also have the countereffect of their actual intention. 

Though there is no significant scientific proof of negative effects of social media on our society, it is true that many females today struggle with eating disorders and body dysmorphia which also correlates with their passion for fitness and well-being. 

Younger people in general might also face pressure from apps like Instagram, Facebook, Snapchat and TikTok when it comes to the fluctuating number of followers and likes they get. 

In relation to the users’ welfare there are also concerns about the privacy and protection of their data. This issue has prompted intimidation in many of the users with regard to how much information they would want to share on social media platforms.  

The creator economy is gradually changing the landscape of our digital world. 

Whether we talk about business, retail, health, beauty, fitness or even love, this new phenomenon will define the direction of many aspects of our lives in the future. We are what we create but we are also what we love. Who knows … maybe one day there might be marriages between humans and AI-generated entities. 

The future is obscure but we are its composers. 

Tomorrow’s picture lies in our hands and the creator’s works will determine the colour palette.

Author

Tina Doncheva