Data Licensing Risk Mitigation
Clients continue to utilize third-party investment data in an increasingly sophisticated manner and often outside a data vendor’s contractual restrictions. Equally, data vendors and exchanges are continually evolving their usage restrictions in order to enhance revenue opportunities. These two major challenges require implementing a strict data usage risk mitigation program. If left unchecked, organizations that licenses third-party data can quickly discover that although their costs may be under control, their data usage profile could put the company at great financial, operational and reputational risk. These risks often lead to vendor audits with significant settlement costs.
We will start by targeting data vendors and exchanges that provide the most risk to our client. Then, we will deeply review usage and contractual obligations similar to audit best-practices employed by leading exchanges and vendors today in order to provide an objective assessment. This assessment will also take into consideration the adherence to reporting and declaration requirements, derived data usage and the rights associated with onward distribution of the vendors content. After this assessment is completed, Investment Data Licensing Advisors will leverage its experience and advise its client with an effective negotiation strategy to mitigate data licensing risks while simultaneously minimizing additional data costs.
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