What is Exclusive license?
Exclusive, sole and non-exclusive
- Non-exclusive: the owner keeps ownership and can license the same rights to others (Copyright Alliance).
- Exclusive: only the licensee can exercise the licensed right, and that includes the licensor (CLIC).
- Sole: the owner licenses no one else but keeps its own right to use what is licensed. A Gordon Feinblatt article warns that “sole and exclusive” is ambiguous unless the contract defines it (Gordon Feinblatt).
In US copyright law, a “transfer of copyright ownership” includes an exclusive license but not a nonexclusive one (17 U.S.C. § 101). An exclusive licensee is treated as the owner of the rights it received and can sue infringers (Copyright Alliance).
Why it matters when you sell data
Exclusivity rules out every other buyer for the licensed rights, so it should be priced higher. WIPO’s licensing guidance says exclusivity “should be more expensive” and suggests limiting it by field or territory (WIPO). For a dataset, exclusivity can also be limited by time or to a named snapshot of data.
Before agreeing to exclusivity, check whether it would stop you using your own data internally, and how long it lasts. See the terms to check in an AI data license offer. This is general information, not legal advice; have counsel review any license.
Frequently asked questions
Does an exclusive license stop me from using my own data?
It can. Hong Kong's Community Legal Information Centre says only the exclusive licensee can exercise the licensed right, including the licensor. A sole license keeps your own right to use it, so check which one the contract grants.
Is an exclusive license the same as selling the data?
Not exactly, but in US copyright law an exclusive license counts as a transfer of copyright ownership, while a nonexclusive license does not. It must be in a signed writing.
Sources
- How is an assignment of copyright different from a licence of copyright?, Community Legal Information Centre (Hong Kong)
- Exclusive vs. Non-Exclusive Licenses, Copyright Alliance
- 17 U.S. Code § 101: Definitions, Cornell Law School Legal Information Institute
- Sole License and Exclusive License Are Not the Same, Gordon Feinblatt LLC
- IP licensing strategies for ventures, World Intellectual Property Organization