Amid growing concerns among writers and creators about artificial intelligence (AI) exploiting their work without providing compensation, a startup from Los Angeles, named SmarterLicense, is offering a groundbreaking solution. This innovative company has launched a tool designed to track when a creator’s work is used online, be it for AI or other purposes.
SmarterLicense, now two years old and boasting a team of six employees, unveiled its product earlier this month. The platform eliminates the need for creators to hire expensive lawyers, a task that often costs up to $1,200 for drafting licensing agreements, according to founder and CEO Liz Hagelthorn. Hagelthorn, a former beauty blogger who previously worked at Coil and Twitter (now X), brings a wealth of experience in creating growth strategies for creators and brands.
The core of SmarterLicense’s offering is its platform, SmarterLinks. Creators can upload various types of content—such as viral TikTok videos—and use customizable templates to create enforceable AI licensing agreements. These agreements allow creators to set a price for their content’s usage and sell it directly to large language models, which can then access the content as a link. This innovative approach enables creators with substantial social media followings to license their analytics to AI companies seeking to train models on consumer trends. Hagelthorn explained on her Substack that creators can track how their files are being used by AI companies and can revoke access to their content at any time if they choose.
Additionally, SmarterLicense features a dashboard connecting creators with companies interested in purchasing content. Creators can upload videos, articles, pictures, and more into their asset libraries, generating licensing contracts as needed. Companies interested in buying content can do so directly from creators’ SmarterLicense profiles or draft their own contracts to send to creators. For example, a soccer league looking to compile a highlight reel using TikTok commentators’ clips can draft a contract on SmarterLicense and send it via direct message on TikTok. Creators can then sign the contract and license their videos for use.
Creators receive 80% of the revenue from licensing their content, with SmarterLicense taking a 20% transaction fee. For comparison, contributors to stock photography company Shutterstock typically receive between 15% to 40% of their licensing price.
The startup has attracted over $1 million in angel funding from prominent figures in the entertainment industry, including music mogul Rick Ross and Outshine Talent CEO Barbara Jones. Looking ahead, SmarterLicense aims to assist brands and creator agencies in setting up private marketplaces to field content requests, according to Hagelthorn.
In other news, Xiaohongshu, a Chinese social media platform, raised new funding and reached a valuation of $17 billion after becoming profitable in 2023. YouTube announced new tools for its Shorts feature, enhancing user engagement with additional customization options. The Home Shopping Network launched HSNfluencer, a creator platform for affiliate product links. Beeble AI, a visual effects startup, raised $4.75 million in seed funding. Roblox introduced new analytics tools for creators, and Genies launched a Creator & Partner Network for personalized avatars. OpenVibe updated its platform to include Bluesky, a short-text social app.
In the realm of entertainment, JoJo Siwa secured a docuseries about her life, and social media influencers Lauren Goodger, Biggs Chris, and Scott Timlin pleaded not guilty to promoting a foreign currencies trading scheme. Gypsy Rose Blanchard, a social media personality, announced her pregnancy.
Noteworthy personnel moves include Chris Harrington being named CEO of CreatorIQ, and Muse Group appointing Debbie Diekelman as CFO, Sven Ahrens as chief growth officer, and Mohammed Chahdi as COO.
These developments underscore the dynamic and rapidly evolving nature of the creator economy, highlighting the myriad opportunities and challenges faced by creators in the digital age.
