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Wednesday, January 15, 2025

AI Licensing for Authors: Who Owns the Rights and What’s a Fair Split?

The Authors Guild. (2024, December 13). 
The Authors Guild. 
Originally published 12 Dec 24

The Authors Guild believes it is crucial that authors, not publishers or tech companies, have control over the licensing of AI rights. Authors must be able to choose whether they want to allow their works to be used by AI and under what terms.

AI Training Is Not Covered Under Standard Publishing Agreements

A trade publishing agreement grants just that: a license to publish. AI training is not publishing, and a publishing contract does not in any way grant that right. AI training is not a new book format, it is not a new market, it is not a new distribution mechanism. Licensing for AI training is a right entirely unrelated to publishing, and is not a right that can simply be tacked onto a subsidiary-rights clause. It is a right reserved by authors, a right that must be negotiated individually for each publishing contract, and only if the author chooses to license that right at all.

Subsidiary Rights Do Not Include AI Rights

The contractual rights that authors do grant to publishers include the right to publish the book in print, electronic, and often audio formats (though many older contracts do not provide for electronic or audio rights). They also grant the publisher “subsidiary rights” authorizing it to license the book or excerpts to third parties in readable formats, such as foreign language editions, serials, abridgements or condensations, and readable digital or electronic editions. AI training rights to date have not been included as a subsidiary right in any contract we have been made aware of. Subsidiary rights have a range of “splits”—percentages of revenues that the publisher keeps and pays to the author. For certain subsidiary rights, such as “other digital” or “other electronic” rights (which some publishers have, we believe erroneously, argued gives them AI training rights), the publisher is typically required to consult with the author or get their approval before granting any subsidiary licenses.


Here are some thoughts:

The Authors Guild emphasizes that authors, not publishers or tech companies, should control AI licensing for their works. Standard publishing contracts don’t cover AI training, as it’s unrelated to traditional publishing rights. Authors retain copyright for AI uses and must negotiate these rights separately, ensuring they can approve or reject licensing deals. Publishers, if involved, should be fairly compensated based on their role, but authors should receive the majority—75-85%—of AI licensing revenues. The Guild also continues legal action against companies for past AI-related copyright violations, advocating for fair practices and author autonomy in this emerging market.