United States: Licensing & Syndication

AI-generated performers like Tilly Norwood and Xania Monet are creating real revenue streams through licensing, streaming, and brand partnerships. How should creators, managers, and agencies structure ownership, navigate international tax obligations, and build sustainable business models around digital talent that exists entirely as intellectual property?

The Delaware Court of Chancery examines whether a November 2023 term sheet constitutes a binding licensing agreement for emotion-recognition AI technology, and whether specific performance can compel transfer of intellectual property rights. Vice Chancellor Zurn signals inclination to enforce the agreement and grant the extraordinary remedy, raising critical questions about contracting for undeveloped AI technology and the enforceability of automatic IP transfer provisions.

For the second time in less than a year, the USPTO, along with the DOJ's Antitrust Division, has stepped into a patent case pending in the Eastern District of Texas.