Microsoft’s New Frontier: The AI Content Licensing App Store

Microsoft’s Publisher Content Marketplace (PCM) and the Future of AI Licensing

Microsoft is currently developing the Publisher Content Marketplace (PCM), an AI licensing platform that aims to streamline the process of acquiring usage rights for online content. Through PCM, AI companies will be able to easily access and negotiate usage terms set by content publishers, facilitating the incorporation of online content into their AI models. In return, content owners will receive usage-based reporting to help them determine appropriate pricing for their content.

The development of PCM has involved collaboration with key companies such as Vox Media, The Associated Press, Condé Nast, and People, among others. This initiative comes in response to the growing trend of AI companies using online content without proper compensation, leading to legal disputes and the need for structured licensing agreements. Some publishers, including The New York Times and The Intercept, have taken legal action against both Microsoft and OpenAI for copyright infringement.

In addition to PCM, there is a publisher-supported open standard known as Really Simple Licensing (RSL). RSL aims to establish a framework that ensures the sustainability of the digital media industry in the era of AI by defining clear licensing terms for content scraping bots.

When questioned about the potential interaction between PCM and RSL, Microsoft spokesperson Courtney Ramirez indicated that the company plans to collaborate closely with publishing partners during the development of PCM, although specific details are not yet available.

According to Microsoft, PCM will enable publishers to receive compensation based on the value of their content, while AI developers will gain access to licensed premium content to enhance their products. The platform is designed to accommodate publishers of all sizes, ranging from large organizations to independent publications.

Microsoft emphasizes that the traditional model of content distribution on the open web is no longer sufficient in an AI-driven world, where information is increasingly delivered through conversational interfaces. PCM represents a step towards adapting to this new paradigm.

As Microsoft moves forward with PCM, it has already onboarded partners like Yahoo and is actively seeking to expand its network of collaborators. The development of PCM reflects a broader effort to address the evolving landscape of content usage in the age of AI.

Update, February 3rd: Microsoft’s progress in advancing PCM.