Keith Porcaro

7/x An organization, especially one that is data immature, may not be well-equipped to manage third-party data relationships. This goes beyond "having a standard contract"—it's about ensuring the relationship plays out as expected. #datatrusts

8/x This can be a good fit for a trust. A data trustee acts on behalf of an organization to manage third-party relationships around data. #datatrusts

9/x In my paper, I discuss variants on this basic model: a "blind trust" where a data analysis company is held in trust and the shareholders are beneficiaries (like @Truata1 ); managing a multi-party collaboration; and isolating data from bankruptcy risks. #datatrusts

10/x Of course, data is different from other assets. It’s not as obviously ascertainable; its value comes from inferences and discoveries derived from the data; duties of care around data management are underdefined. #datatrusts

11/x I argue that #datatrusts trusts may not be a good fit for regulating users' relationships with a platform. Data can be freely replicated, and a "user trust" may not be able to prevent users from cutting side deals, undermining the negotiating leverage of the trust.

12/x In modern trusts, (especially in NA), the trust document plays a dominant role in setting the terms of the trust. It can override defaults in trust law. This means that a commercial trust arguably prioritizes a settlor's intent over beneficiary interests. #datatrusts

13/x In a city, for instance, two #datatrusts datatrusts could represent diametrically opposite policy proposals. SidewalkLabs's early proposal is a good example of a data trust being drafted to benefit Sidewalk, rather than restrain them.

14/x Sidewalk’s proposed #datatrusts (which may not be a trust) handcuffs a trustee from putting restrictions on data access, and prevents them from capturing the value of inferences and discoveries made from the data. Sidewalk is best positioned to benefit.