Code and Web third-party distribution and licensing FAQ

Hi all!

If you sell web or code items on Envato Elements or Envato Market, you will have received an email update last night about the inclusion of these categories in future third-party licensing and distribution arrangements. The email also contains details on how you can opt out of having your web and code items included in these arrangements, if required.

If you have questions about this process, please ask them here. I’ll be compiling everything from this thread and raising them with our project team, and will share answers here as they become available.

FAQs

Why is Envato doing this?

By providing you with the ability to opt-out of third-party arrangements by April 3rd, we will have clarity over the total number and types of web and code items that we can explore third-party licensing and distribution arrangements for, from April 2025 onwards.

Our industry is undergoing significant change, and there will be potential for new ways to generate revenue and earnings for our Author community. But in order to effectively pursue these new opportunities, we need the ability to move quickly and adapt. This is a step in that journey.

What do we mean by “third party arrangements”?

The term “third party arrangements” covers use of the content you license through Envato, on sites outside of our ecosystem. As discussed in our Author Hub article, this could include:

  • Developing generative AI models
  • Augmenting a partner’s content offering with our library
  • Integrating content into creative tools

How long do I have to make a decision on this?

If you do not want your web and code content included in any third-party distribution or licensing arrangements, you can opt out via the link in that email. If you decide to opt out, you have until midnight Thursday 3 April, 2025 (AEST) to do so.

How will Author earnings be affected by this?

Your item distribution on Market and Elements is not affected by your choice to opt in or out of third-party distribution and licensing arrangements. Any revenue generated from third parties will be additional revenue, above and beyond what you earn directly on Envato sites. You will see this in your earnings report.

Would third-party earnings be ongoing or one-off payments?

Both options are possible, and would depend on the specific partner arrangements and their usage. Without having full details of future arrangements, we cannot provide you with details of fee structures. Compensation and the share will be subject to the terms negotiated with third party partners.

If I opt out of third-party arrangements for web or code items, can I continue selling items on Envato?

Yes. Opting out of third-party arrangements will not impact your ability to continue selling your items on Envato as normal.

Why is Envato asking Authors to opt in or out before any details are available?

Before we can start to discuss third-party arrangements with any third parties, we need clear data about how many Code and Web items are potentially available for use. This is why we’re notifying you now.

Can I change my opt-in status after April 3?

No. Once we finalize the list of items that we can pursue third-party deals for, we will not be adding or removing content on an item or Author level. This is not feasible given the scale of our community: we have tens of thousands of Authors in our community, and it makes it difficult to have third-party discussions while the number of items is in constant flux.

Why is everything included in a single opt-out process?

We are combining all potential 3rd-party distribution and GenAI-related licensing into a single opt-in process to simplify this, due to the number of different Authors and items involved. This gives our team a clear number of items that they can enter third-party arrangement discussions and pursue new revenue opportunities for, and flexibility in how they seek these opportunities.

How can I change my response if I have already submitted the Opt-Out form?

Please open an Author Support ticket and use it to provide updated information before April 3, so that we have an official reference for your request.

A note on third-party arrangement selection, scale and speed:

It’s important to note that we are working to ensure that any potential third party arrangements benefit all parties: we’re looking for arrangements that can generate meaningful income for both Envato and the Author community. This takes time, as we will not jump at every potential offer.

While selecting third-parties can take time, when discussions do commence things can move very quickly. This is why we need to establish a clear number of items that we have permission to use in third-party arrangements.

At the stage when a third-party arrangement is under consideration, it will not be possible to go back to adjust the content that is available. The Envato community involves thousands of Authors and millions of items, and the process of contacting and seeking usage permissions from our full community takes several weeks. This is why we’re establishing permission up front, so that our commercial teams can move quickly later on.

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Thank you :+1:

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Hi,
If we opt-in for third party distribution, then will envato take some extra fees from the authors?
If my item will be sold from third-party distribution, then its license key will be same as current in envato?
Thanks

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@KingDog @BenLeong
Sorry to say this: It seems like another setback for Envato authors, as Envato appears to be focused on increasing its own revenue. On top of that, this move could give AI models free rein to capitalize on creators’ hard work, sidelining designers and developers in the process.

In my opinion, since the acquisition, Envato hasn’t made significant efforts to boost authors’ earnings, with minimal marketing initiatives and several missing opportunities.

Authors expected Envato to help boost sales on ThemeForest and CodeCanyon, but they now feel let down and disheartened due to the lack of effort.

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I understand that Envato is looking for new revenue opportunities through third-party licensing and AI integration, but the way this is being executed raises concerns. The opt-in/opt-out process feels rushed, with little transparency about how authors will truly benefit.

Many authors, including myself, expected Envato to focus more on boosting sales and improving market visibility for ThemeForest and CodeCanyon items. Instead, we are now being asked to commit to something without knowing the full details.

If this truly benefits authors, Envato should provide clear insights on how revenue sharing will work, how AI training will impact our work, and what safeguards will be in place to protect our content from being misused. Otherwise, this feels more like another move that prioritizes Envato’s growth over its author community.

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As an Envato author, I’m concerned about the lack of transparency in this decision. While new revenue opportunities sound promising, there’s no clarity on how authors will truly benefit. AI training on our content without clear compensation details feels risky. Envato should prioritize boosting author earnings on its own marketplace instead of pushing vague third-party deals.

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After AI training is completed, Envato will gain more profit because AI-generated content benefits customers more. As a result, customers will subscribe more and start creating their own products using AI. In this case, customers will no longer depend on authors, and Envato will survive without them. I think, in such a scenario, authors may need to start looking for new jobs. This is just my thought.

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Similar system implemented in Pond5. You can ask how much the authors get paid. It`s really nothing.

It’s been 3 years since AI was released. A lot of peoples lost their work and more will be lost as generative models keep improoving. It is not difficult to draw conclusions. Unfortunately, generative models compete with the stock market. Many people chose generative content created by the work of authors and did not need authors or stock markets anymore.
Personally, i opted out with anything related to generative software.

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That basically happens with microstock sites, will happen with music and video stocks any moment now, but it will take a bit longer for code part, AI is amazing and writing code but it’s not able (yet) to generate new Avada(s).

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