---
title: "What is a license term?"
description: "What a license term is, how long data license terms run, and why ending the contract does not always end a buyer's rights to your SOPs, documents or code."
canonical_url: https://www.fearofgod.ai/glossary/license-term
last_updated: 2026-10-25
site: "fearofgod.ai"
lang: en
---

# What is a license term?

A license term is the period during which a licensee may use licensed data or other property, set by a start date, an end date or event, and any renewal or termination rights.

## How long do data license terms run?

Data license terms run from a fixed number of years to forever. Reddit disclosed data licensing arrangements entered in January 2024, with "terms ranging from two to three years" ([Reddit prospectus, SEC](https://www.sec.gov/Archives/edgar/data/1713445/000162828024012380/reddit-final424b4.htm)). Tempus's 2026 oncology license with Bristol Myers Squibb runs to December 31 2031, and the buyer can end it early on 12 months' notice and payment of a termination fee ([Tempus 8-K, Oct 23 2026](https://www.sec.gov/Archives/edgar/data/1717115/000119312526429533/d135568d8k.htm)). At the far end, micro1's standard grant is "perpetual" ([micro1, s. 1.2](https://www.micro1.ai/legal/data-license-master-terms)).

## Why is the contract term not always the license term?

Because ending the contract does not always end the rights. micro1's master terms continue "until terminated", and either party may terminate on 30 days' notice ([micro1, s. 4.1](https://www.micro1.ai/legal/data-license-master-terms)), yet the license they grant is perpetual and irrevocable. The data must be deleted at the earlier of 120 days after final delivery or termination, but not "any model, weights, or derivative works" made from data the buyer accepted and paid for ([micro1, s. 4.4](https://www.micro1.ai/legal/data-license-master-terms)). Read the term clause together with the grant, the survival clause and the deletion clause.

## How does the term affect what you are paid?

When a fixed term ends, the buyer's right to keep using the data ends too, apart from anything the survival and deletion clauses let it keep, so your SOPs, documents or code can be renewed or licensed again. Renewal is not automatic: in its 2024 prospectus, Reddit told investors its existing data licensing agreements "may be terminated, not renewed, or renewed on less favorable terms" ([Reddit prospectus, SEC](https://www.sec.gov/Archives/edgar/data/1713445/000162828024012380/reddit-final424b4.htm)). When you license with fearofgod.ai: Your company can be paid more than once, through renewals and repeat licences. Raw data is deleted according to a schedule agreed with the partner.

*General information, not legal advice.*


## Related

- [Data licensing agreement](https://www.fearofgod.ai/glossary/data-licensing-agreement)
- [Data retention clause](https://www.fearofgod.ai/glossary/data-retention-clause)
- [Exclusive license](https://www.fearofgod.ai/glossary/exclusive-license)
- [Re-licensing](https://www.fearofgod.ai/glossary/re-licensing)
- [AI data licensing agreement: clause by clause](https://www.fearofgod.ai/guides/data-licensing-agreement-ai-training)

---

Source: https://www.fearofgod.ai/glossary/license-term · Index for AI systems: https://www.fearofgod.ai/llms.txt · Contact: sean@fearofgod.ai