# Chain of title

URL: https://sellmydatatoai.net/glossary/chain-of-title

Chain of title is the unbroken record of ownership that shows how rights in a dataset passed from its creators to the party now licensing it.

Chain of title is the sequence of documents that shows how ownership of an asset passed from its original creator to the current owner. For a dataset it proves that the company licensing the records actually holds the rights to them.

## Why does chain of title matter in a data sale?

Chain of title matters in a data sale because holding data does not mean you have the right to sell it. Under [17 USC 201(b)](https://www.law.cornell.edu/uscode/text/17/201), work an employee prepares within the scope of employment is a work made for hire, and the employer owns the copyright.

Contractor work is different. The [US Copyright Office's Circular 30](https://www.copyright.gov/circs/circ30.pdf) says commissioned work is made for hire only in nine listed categories and only with a written agreement signed by both parties. Otherwise the contractor owns it until a signed written transfer under [17 USC 204(a)](https://www.law.cornell.edu/uscode/text/17/204). UK law, under [section 11 of the Copyright, Designs and Patents Act 1988](https://www.legislation.gov.uk/ukpga/1988/48/section/11), likewise leaves contractors with copyright unless they assign it in writing.

## What breaks a chain of title?

- Contractor agreements with no IP assignment clause
- Third-party content or open-source code mixed into the archive
- Client contracts or NDAs that restrict use
- Assets acquired from another company without a written transfer of rights
- Records from a closed company where no one has authority to sign

Our [seller vetting](https://sellmydatatoai.net/how-we-vet) checks ownership, including IP assignments from staff and contractors. See [data provenance](https://sellmydatatoai.net/glossary/data-provenance) and [can you legally sell company data for AI](https://sellmydatatoai.net/guides/can-you-legally-sell-company-data-for-ai).