Created by Humans: License Your Creative Works to AI with Support from David Sacks, Garry Tan, and Walter Isaacson

In 2024, it's becoming increasingly common for media organizations, authors, and artists to take legal action against generative AI companies for using their work to train models without obtaining permission. This ongoing issue is compounded by the lack of a clear framework for determining copyright violations in the context of AI training.

To navigate this complex landscape, Created by Humans, a new startup that launched this Tuesday, aims to eliminate costly legal disputes by providing a marketplace for creators to directly license their intellectual property to large language models (LLMs). Founded by Trip Adler, the former CEO of Scribd—a platform that evolved from document sharing to digital book and news subscriptions—Created by Humans has already attracted $5 million in funding from a group of high-profile investors, including David Sacks, co-host of the All-In podcast; Mike Maples, co-founder of Floodgate Fund; and other notable backers like Jason Calacanis from LAUNCH Fund, Sam Lessin of Slow Ventures, and Garry Tan. Additionally, best-selling author Walter Isaacson has invested and agreed to serve as a creative advisor and inaugural author whose works can be licensed.

Created by Humans envisions a platform where creators of videos, images, music, and medical data can sell licensing rights for AI training. However, due to Adler's extensive background in the publishing sector, the startup is initially focusing on providing services for authors and book publishers. It’s worth noting that Created by Humans is not the only entity addressing the need for a connection between content creators and AI developers; Human Native, founded by a former engineer from Google DeepMind, is another example.

Currently, Created by Humans has developed a platform that allows authors to submit their works for AI companies to purchase specific elements with clearly defined usage rights. The specifics of the licensing agreement are still being fine-tuned. Adler explained, “We’re trying to broker a three-way deal between authors, publishers, and the AI industry. It’s complicated, but we’re making great progress.”

To guide this effort, Created by Humans is proposing a framework called the Fourth Law, inspired by Isaac Asimov’s three laws of robotics. This philosophy asserts that creators should have the right to consent to how their work is used and trained by AI and should be compensated and credited appropriately. For instance, if a book is referenced in an AI output, there should be a direct link to purchase it. Adler asserts, “We want [the Fourth Law] to become the new standard for how deals are structured between AI companies and content owners.”

With this framework, authors will be able to specify the types of rights they wish to license. Once rights are purchased, Created by Humans will take a percentage of the transaction. For example, Walter Isaacson can select the rights he wishes to license from his books—including training rights, reference rights, or even the stylistic elements of his work. “Walter will receive a dashboard displaying how his books are utilized and how he earns income from them," Adler elaborated.

Created by Humans aims to create a comprehensive licensing structure that encompasses everything from adapting a book into a screenplay to real-time translations. Adler envisions “AI revenue” becoming the next significant force in the book industry, potentially surpassing e-books and audiobooks. “I believe this will revitalize the book industry and provide new incentives for writing,” he concluded.