Yahoo has signed on as the first licensee of the Internet Licensing Collective (ILC), previously known as RSL, adopting a new collective model for AI content licensing. Under the agreement, publishers of all sizes can license their content for use in Yahoo’s AI-powered search engine, Scout, and receive payments based on actual usage. The licensing fee Yahoo pays is tied to demand-side revenue, though specific figures were not disclosed.
The ILC model differs from traditional flat-fee deals by introducing segmented royalty pools, meaning publishers are compensated only for the content used by specific AI products. This approach aims to protect niche publishers from having their earnings diluted by larger, general-purpose platforms. Payments are determined by allocation rules that factor in how content is used and whether publishers are credited.
This collective approach is being watched by other major AI and tech companies, with Google and Microsoft reportedly testing similar pay-per-value licensing models. For brand and marketing leaders, this could affect digital content strategy, rights management and negotiations with both AI firms and publishers.
The ILC is in discussions with additional AI companies, signalling possible expansion of this model. Leaders should assess how these evolving licensing structures may impact content value and publisher partnerships.
