How Data Cooperatives Can Help Build a Fair Data Economy
* Report: Nicole, S., Vance-Law, S., Spelliscy, C., Bell, J. (2025, January). Towards Data Cooperatives for a Sustainable Digital Economy. Project Liberty Institute & Decentralization Research Center.
Description
"This report is based on a series of interviews that took place between November 2024 and January 2025. It summarises the key issues vis a vis data cooperative development and deployment and sets the directions for the final outcome of this initiative. While every effort has been made to faithfully reflect all input received, it should be noted that the views expressed herein are those of the Project Liberty Institute and the Decentralization Research Center, and they may not necessarily align with the individual positions of the expert contributors listed below or the organizations with which participants of the first consultation are affiliated.
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This initial report sets the agenda for an in-depth exploration of data cooperatives as scalable business models. In drafting the report, we interviewed 16 experts with a wealth of knowledge and experience related to the design and implementation of cooperatives, the evolving nature of data-driven businesses and questions of data rights in the 21st century. Their contributions highlight both the challenges and opportunities inherent in translating cooperative business models to the digital realm.
The initiative’s end result will be twofold: a “roadmap” marking possible paths – and pitfalls – to applying cooperative models in a digital context and an action network of like-minded individuals and institutions dedicated to advancing individual data agency, economic fairness and shared progress in the digital age.
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This initial report establishes an agenda for critically examining the potential for cooperatives to help transform today’s digital economy. It draws on interviews with 16 key experts in the field of data cooperatives, digital rights, data governance, and the digital economy. Their diverse backgrounds as lawyers, economists, academics, and technical experts offer a nuanced perspective for those seeking to understand both the potential and the challenges of this emerging model. While the concept of data cooperatives has gained traction in recent years, real-world examples of successful, large-scale initiatives remain limited. The interviews highlight the need for distilling lessons-learned e and charting a realistic path forward.
It should be noted that this initial report focuses on cooperatives that are formed around the governance of data, and not traditional cooperatives per se. Many cooperatives across different sectors manage and use their members’ data as a growing part of their operations. The learnings inherent in those processes are not included in this initial report and require further research."
Excerpts
Comparing Data Coops, Data Trusts, and Data Commons
S. Nicole et al. :
"Data co-ops empower individuals by giving them voice, choice, and stake in their digital lives, distinguishing them from data trusts and data commons. In a data co-op, members can actively participate in democratic governance, voting on how their data is used, managed, and monetized, or delegate those responsibilities to others. This contrasts with data trusts, where trustees make decisions on behalf of contributors in a more top-down structure, and data commons, which, while participatory, often lack structured individual rights.² By centering decision-making with members, data co-ops ensure individuals have a direct say in shaping their digital futures.
Additionally, data co-ops offer strong privacy and economic benefits. Members decide how their data is shared, opting in or out of agreements, and can also determine whether and how their data is monetized.
This level of control surpasses the protective but less flexible frameworks of data trusts and the open-sharing nature of data commons, which may not fully consider personal preferences. Additionally, data co-ops give individuals a financial stake, distributing economic returns directly to members. Unlike data trusts and data commons, which focus on protection or collective access, co-ops uniquely prioritize member ownership, autonomy, and shared prosperity.
However, there are possibilities for data co-ops, data trusts, and data commons models to complement each other by combining individual control, legal protection, and collective access, providing a balanced approach to data governance. This hybrid model will be analyzed further as the initiative proceeds."
Discussion
From the Conclusion, S. Vance-Law et al. :
"Exploring what the cooperative model can offer will remain a vital component in enabling equitable agency and governance of data. To further this goal, data co-op experiments must establish clear metrics for success, involve continuous community feedback, and prioritize transparency to ensure they genuinely offer alternatives to current exploitative data models. By embracing a spirit of experimentation, prioritizing practical solutions, fostering collaboration across sectors, and advocating for supportive policy changes, we can contribute to the development of data cooperatives that empower individuals, strengthen communities, and harness the potential of data for collective benefit.
As we move forward, the goal is not just to theorize about better systems but to actively contribute to building them. The Roadmap for a Sustainable Digital Economy will build on this initial report, delve deeper into existing research on data co-ops, engage with additional experts and communities through the Action Network, and examine real-world use cases to provide entrepreneurs, businesses, with practical guidance for creating solutions that protect and empower individuals in managing their data.
This initiative serves as a call to action—an opportunity to experiment, learn, and refine solutions that prioritize data agency, fairness, and collective benefit."
More information
- Fehlinger, P, Bell, J., McBride, C., Farrell, M. (2024, November). Toward a Fair Data Economy: A Blueprint for Innovation and Growth: Action Recommendations of the Project Liberty FDE Task Force. Project Liberty Institute.
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