Compliance Requirements for Data Monetization

Data monetization. It’s a simple concept at its core. Transforming raw data into sellable datasets or actionable insights to unlock a new revenue stream. Companies everywhere are sitting on valuable data assets, but the general consensus is that data monetization is just for the big players, the Googles and Reddits of the world. A big reason for that is the compliance hoops a company needs to jump through to ensure their data meets the legal requirements for monetization. While there are indeed compliance requirements, they aren’t as formidable as one might think. Platforms like Tiki make the process even easier by providing tools to manage privacy, compliance, and licensing. In this blog, we’ll walk through the compliance requirements for data monetization and how Tiki can help.

Sections

1. Legal Ownership of the Dataset

2. Transparent Terms of Service

3. Handling Personal Data

4. Buyer-Side Compliance Requirements

Legal Ownership of the Dataset

Before monetizing any dataset, it’s essential to confirm you have the legal right to do so. This doesn’t have to be complicated. If you own the dataset outright, great—you’re good to go. If not, you’ll need explicit legal rights to monetize it. Ownership can apply to raw data or derived signals, which are essentially processed versions of raw datasets.

Let’s break it down with an example. Imagine a fitness app collecting user activity data. If the app’s terms of service clearly state ownership over this data, the app can monetize it directly. Alternatively, a company might take raw data and analyze it to create aggregated insights—this would count as a derived signal. Either way, securing ownership rights is key, and it’s a straightforward process. Establish clear agreements with your data sources, whether they’re individuals, apps, or partner businesses. These agreements should explicitly grant the rights to use and monetize the data.

Tiki simplifies this process with its vetted licensing templates. These templates are purposefully designed for non-commercial evaluation and production data licensing, making it easier for you to establish and document ownership rights.

Transparent Terms of Service

Having clear and transparent terms of service, privacy policies, and master service agreements (MSAs) is one of the easiest ways to ensure compliance. These documents don’t need to be complicated, but they do need to spell out how the data you collect will be used, including any plans for monetization.

Take a cue from app terms of service that say something like, "By using our service, you grant us the right to collect, use, and share your data in accordance with this privacy policy." Adding similar language to your terms can go a long way in keeping things clear and compliant. Make sure your terms cover important details like data usage, storage, sharing with third parties, and any de-identification practices you’re using. Being upfront about these things not only simplifies compliance but also builds trust with your users.

Tiki’s platform includes expert analysis of your agreements. With AI and in-house counsel, Tiki reviews and recommends amendments to terms of service, privacy policies, MSAs, and more. This ensures that your agreements align with compliance requirements and legal standards.

Handling Personal Data

Personal data is any information that can directly or indirectly identify an individual. To monetize data that includes personal information, vendors need to navigate different legal frameworks. The good news is there are clear and manageable ways to stay compliant. Here are three approaches you can use:

1. Permission from Users: This is as simple as getting consent. Add an opt-in option or include clear language in your terms of service that explains how the data will be used. For example, "I agree to the use of my data for analysis and monetization purposes."

2. Aggregation: Combine personal data into a larger dataset that removes identifying details. This turns the data into a derived signal, reducing legal risk while keeping the dataset valuable.

3. De-Identification: Use strong de-identification techniques to ensure individuals can’t be re-identified. Pair this with buyer agreements that prohibit any attempts to reverse the process.

Compliance laws differ depending on where you operate. For instance, the European Union’s General Data Protection Regulation (GDPR) focuses on user consent and data minimization. Meanwhile, California’s Consumer Privacy Act (CCPA) gives users the option to opt out of data sales. It’s important to align your practices with the specific laws in the countries where your data comes from and is being used. Once you understand the rules, implementing these approaches becomes straightforward.

Tiki makes managing personal data even easier. The platform provides built-in tools for de-identification, redaction, sanitization, tokenization, and more. These features allow you to create secure, compliant, and privacy-centric data products while simplifying compliance with complex regulations.

Buyer-Side Compliance Requirements

When selling data, it’s not just your compliance that matters. Buyers have their own requirements, and meeting those is key to closing the deal. The good news? These requirements are usually easy to address with a little preparation. Here’s what buyers typically look for:

1. Proof of Legal Rights: Buyers need to know you have the legal rights to monetize the data. Keep documentation handy that shows you own the data or have the right agreements in place.

2. Accurate and Reliable Data: Buyers want data they can trust. Make sure your datasets are high-quality and well-documented to show their authenticity.

3. Ownership Trail: Buyers often need to see a clear trail of ownership, showing how the data moved from the source to you and then to them. Agreements can be redacted if necessary to protect sensitive details.

4. Cross-Border Compliance: If the buyer is in a different country, the data needs to meet the legal requirements of both your country and theirs. De-identifying data often makes this process much easier.

5. Industry-Specific Requirements: Some industries have specific forms or questionnaires, like Due Diligence Questionnaires (DDQs), that buyers will ask for. Having templates ready can save time and keep the process moving smoothly.

Tiki’s platform is designed to make meeting buyer requirements easier. With tools for compliance documentation, monitoring, and audit trails, Tiki equips your data products to meet both buyer and regulatory standards. Additionally, Tiki provides alerts for practices that might violate standards, ensuring you stay ahead of potential issues.

Compliance is a key part of successful data monetization, but it doesn’t have to be overwhelming. By securing legal rights to your data, being transparent with your users, handling personal data responsibly, and aligning with buyer requirements, you can turn your data into a reliable revenue stream. Platforms like Tiki streamline the entire process, providing the tools and insights you need to license your data confidently. If you’re ready to take the next step in data monetization, reach out to Tiki today.