SKILL 67: Data Licensing & Monetization
Purpose
Legally sell the data your prediction market generates. Know what data is yours to sell, what requires user consent, and how to structure licensing deals.
What Data You CAN Sell (Low/No Risk)
| Data Type |
Privacy Risk |
Sellable? |
Notes |
| Aggregate market prices (OHLCV) |
None — no PII |
✅ Freely |
Anonymized, no individual data |
| Historical accuracy of AI models |
None |
✅ Freely |
Your core product's value-add |
| Aggregated crowd sentiment |
None (if aggregated) |
✅ Freely |
"60% of positions are on YES" |
| Resolution outcomes database |
None |
✅ Freely |
Public event outcomes |
| Volatility/trading volume metrics |
None |
✅ Freely |
Market-level stats |
| Proprietary indices/scores you create |
None |
✅ Freely |
Your IP |
What Data You CANNOT Sell or Must Be Careful With
| Data Type |
Restriction |
Notes |
| Individual user trading history (PII-linked) |
CCPA opt-out required; GDPR consent required |
Can sell if user opts in; cannot sell without consent |
| Individual user identities / KYC data |
NEVER |
Not sellable under any circumstances |
| Individual wallet-to-position mapping |
Privacy violation + potential market manipulation |
Front-running risk: reveals positions |
| Real-time individual positions |
Market manipulation risk |
Could enable front-running by data buyers |
Data Licensing Tiers
API Access Structure
- Free tier: 15-minute delayed data, 100 API calls/day, limited history. Builds developer ecosystem.
- Basic ($X/month): real-time data, 10K calls/day, 1-year history. Media, researchers, retail.
- Pro ($X/month): full real-time + historical data, 100K calls/day, webhooks. Hedge funds, data aggregators.
- Enterprise (custom pricing): raw data feeds, custom queries, dedicated engineering support, SLA. Institutional clients.
Pricing Reference Points
- Bloomberg Terminal: ~$2,000/month/user for financial data
- Quandl/Nasdaq Data Link: $50–500/month for alternative data
- AI benchmark data (novel): price is what the market will bear. Start at $500/month Pro.
API Terms of Service — Required Provisions
- Permitted use: display, analysis, building applications that consume but don't redistribute raw data
- Prohibited uses: redistribution (licensee cannot resell your data), scraping for a competing platform, using to build a competing data product, manipulation (using your data to execute market manipulation)
- Attribution: "Source: [Platform Name]" required on all published uses of your data
- Rate limits: enforce technically AND in the terms
- Data accuracy: "provided as-is, no warranty of accuracy or completeness or timeliness"
- Liability cap: licensee's remedy for data errors limited to fees paid in the prior month
- Indemnification: licensee indemnifies you for their use of the data
- Termination: you can revoke access at any time; licensee has 30 days to destroy data
Intellectual Property in Market Data
What Is Copyrightable
- Raw prices/volumes: generally NOT copyrightable (Feist Publications v. Rural Telephone Service, 1991 — facts are not copyrightable)
- Curated/compiled datasets: potentially copyrightable as a compilation if there's creative selection and arrangement
- Proprietary indices and metrics you create (e.g., "AI Prediction Accuracy Score"): copyrightable expression, potentially patentable method
- Your AI accuracy database: protectable as a trade secret (reasonable measures to keep it secret + economic value from secrecy)
EU Database Rights
- Sui generis database right under EU Database Directive (96/9/EC)
- Protects substantial investment in obtaining, verifying, or presenting database contents
- 15-year protection from completion
- Relevant if you serve EU users — another reason to have EU users eventually
Revenue Potential
| Customer Type |
Monthly Value |
Data Product |
| AI lab (Anthropic, OpenAI, Google) |
$5K–$50K/month |
AI prediction accuracy benchmarks, calibration data |
| Hedge fund |
$2K–$20K/month |
Aggregated crowd sentiment, accuracy metrics |
| Media organization |
$500–$5K/month |
Real-time market prices, resolution data |
| Academic researcher |
Free–$500/month |
Historical data access |
| Retail developer (API) |
$50–$500/month |
Free/Basic tier |
This revenue stream has minimal regulatory risk — you're selling data, not operating a market.
This is legal research and intelligence, not legal advice. Consult qualified legal counsel before taking action.
1---2name: data-licensing-monetization3description: SKILL 67: Data Licensing & Monetization4---5# SKILL 67: Data Licensing & Monetization67## Purpose8Legally sell the data your prediction market generates. Know what data is yours to sell, what requires user consent, and how to structure licensing deals.910## What Data You CAN Sell (Low/No Risk)1112| Data Type | Privacy Risk | Sellable? | Notes |13|-----------|-------------|-----------|-------|14| Aggregate market prices (OHLCV) | None — no PII | ✅ Freely | Anonymized, no individual data |15| Historical accuracy of AI models | None | ✅ Freely | Your core product's value-add |16| Aggregated crowd sentiment | None (if aggregated) | ✅ Freely | "60% of positions are on YES" |17| Resolution outcomes database | None | ✅ Freely | Public event outcomes |18| Volatility/trading volume metrics | None | ✅ Freely | Market-level stats |19| Proprietary indices/scores you create | None | ✅ Freely | Your IP |2021## What Data You CANNOT Sell or Must Be Careful With2223| Data Type | Restriction | Notes |24|-----------|------------|-------|25| Individual user trading history (PII-linked) | CCPA opt-out required; GDPR consent required | Can sell if user opts in; cannot sell without consent |26| Individual user identities / KYC data | NEVER | Not sellable under any circumstances |27| Individual wallet-to-position mapping | Privacy violation + potential market manipulation | Front-running risk: reveals positions |28| Real-time individual positions | Market manipulation risk | Could enable front-running by data buyers |2930## Data Licensing Tiers3132### API Access Structure33- **Free tier**: 15-minute delayed data, 100 API calls/day, limited history. Builds developer ecosystem.34- **Basic ($X/month)**: real-time data, 10K calls/day, 1-year history. Media, researchers, retail.35- **Pro ($X/month)**: full real-time + historical data, 100K calls/day, webhooks. Hedge funds, data aggregators.36- **Enterprise (custom pricing)**: raw data feeds, custom queries, dedicated engineering support, SLA. Institutional clients.3738### Pricing Reference Points39- Bloomberg Terminal: ~$2,000/month/user for financial data40- Quandl/Nasdaq Data Link: $50–500/month for alternative data41- AI benchmark data (novel): price is what the market will bear. Start at $500/month Pro.4243## API Terms of Service — Required Provisions44- **Permitted use**: display, analysis, building applications that consume but don't redistribute raw data45- **Prohibited uses**: redistribution (licensee cannot resell your data), scraping for a competing platform, using to build a competing data product, manipulation (using your data to execute market manipulation)46- **Attribution**: "Source: [Platform Name]" required on all published uses of your data47- **Rate limits**: enforce technically AND in the terms48- **Data accuracy**: "provided as-is, no warranty of accuracy or completeness or timeliness"49- **Liability cap**: licensee's remedy for data errors limited to fees paid in the prior month50- **Indemnification**: licensee indemnifies you for their use of the data51- **Termination**: you can revoke access at any time; licensee has 30 days to destroy data5253## Intellectual Property in Market Data5455### What Is Copyrightable56- Raw prices/volumes: generally NOT copyrightable (*Feist Publications v. Rural Telephone Service*, 1991 — facts are not copyrightable)57- **Curated/compiled datasets**: potentially copyrightable as a compilation if there's creative selection and arrangement58- **Proprietary indices and metrics you create** (e.g., "AI Prediction Accuracy Score"): copyrightable expression, potentially patentable method59- **Your AI accuracy database**: protectable as a trade secret (reasonable measures to keep it secret + economic value from secrecy)6061### EU Database Rights62- Sui generis database right under EU Database Directive (96/9/EC)63- Protects substantial investment in obtaining, verifying, or presenting database contents64- 15-year protection from completion65- Relevant if you serve EU users — another reason to have EU users eventually6667## Revenue Potential68| Customer Type | Monthly Value | Data Product |69|-------------|--------------|-------------|70| AI lab (Anthropic, OpenAI, Google) | $5K–$50K/month | AI prediction accuracy benchmarks, calibration data |71| Hedge fund | $2K–$20K/month | Aggregated crowd sentiment, accuracy metrics |72| Media organization | $500–$5K/month | Real-time market prices, resolution data |73| Academic researcher | Free–$500/month | Historical data access |74| Retail developer (API) | $50–$500/month | Free/Basic tier |7576This revenue stream has minimal regulatory risk — you're selling data, not operating a market.7778---79*This is legal research and intelligence, not legal advice. Consult qualified legal counsel before taking action.*
nickgallick