Universal Music Group and TikTok end dispute, agree on deal

The two companies termed the new deal “a multi-dimensional licensing agreement that will deliver significant industry-leading benefits for UMG’s global family of artists, songwriters and labels and will return their music to TikTok’s billion-plus global community.”

In January, UMG’s negotiations for a new licence with TikTok on fair compensation for artists and songwriters, protection from the potential adverse effects of AI on human artists, and online safety fell through, leading to UMG pulling out its entire catalogue from the platform.

According to a statement, UMG and TikTok are now working expeditiously to return music by artists represented by UMG and songwriters represented by Universal Music Publishing Group to TikTok in due course.

“The joint agreement marks a new era of strategic collaboration between the two organisations, built on a shared commitment to help UMG’s artists and songwriters achieve their creative and commercial potential,” the statement said. “By harnessing TikTok’s best-in-class technology, marketing and promotional capabilities, UMG and TikTok will deliver improved remuneration for UMG’s songwriters and artists, new promotional and engagement opportunities for their recordings and songs and industry-leading protections with respect to generative AI.”

This means TikTok users can now look forward to the return of UMG’s recorded music and publishing catalogs to once again enjoy creating videos using music from some of the world’s biggest artists and songwriters as well as emerging talent.

As part of the agreement, both companies will work together to realise new monetisation opportunities utilising TikTok’s growing e-commerce capabilities and collaborate on campaigns supporting UMG’s artists across genres and territories globally.

TikTok will continue to invest significant resources into building artist-centric tools that will help UMG artists fulfil their potential. Tools including the Add to Music App, enhanced data and analytics and integrated ticketing capabilities will benefit artists, both financially and in building their global fan bases using TikTok’s scale and engaged community, while strengthening online safety protections for artists and their fans.

In addition, TikTok and UMG will work together to ensure that AI development across the music industry protects human artistry and the economics that flow to artists and songwriters. TikTok is also committed to working with UMG to remove unauthorised AI-generated music from the platform and develop tools to improve artist and songwriter attribution.

“This new chapter in our relationship with TikTok focuses on the value of music, the primacy of human artistry and the welfare of the creative community,” UMG CEO Sir Lucian Grainge said. “We look forward to collaborating with the team at TikTok to further the interests of our artists and songwriters and drive innovation in fan engagement while advancing social music monetisation.”

TikTok CEO Shou Chew said: “Music is an integral part of the TikTok ecosystem and we are pleased to have found a path forward with Universal Music Group. We are committed to working together to drive value, discovery and promotion for all of UMG’s amazing artists and songwriters, and deepen their ability to grow, connect and engage with the TikTok community.”

TikTok is bracing for a legal battle in the US after President Joe Biden signed into law a bill that could see the app banned in the country. The law came into effect on 24 April after the US Senate voted 79 to 18 in favour of ‘the divest-or-ban’ provision. The bill was first introduced to Congress early last month after US legislators raised concerns the China-based ByteDance-owned company could be collecting and passing sensitive data to the Chinese government. Some view the legislation as a move towards censorship.

At the same time, the National Music Publishers’ Association’s (NMPA’s) licensing deal with TikTok – representing the music publishing rights of multiple indie music publishers – officially expired on 30 April.

According to Music Business Worldwide, the US trade body told its members last month that it wasn’t planning to extend the deal and that if they wanted to continue to licence their music to TikTok beyond the 30 April deadline, they would need to “engage directly” with the platform.

“Music is essential to TikTok. As we have said, we are not engaging in an extension of our deal. We are hopeful that the platform comes to the table with music publishers and compensates songwriters properly – their service depends on it,” NMPA president and CEO David Israelite said.

In a memo shared with NMPA members last month, the organisation said: “It is important that all NMPA members understand that without a licence in place, TikTok should not be using your musical works on its platform.” The NMPA also offered to help indie publishers take legal action against ByteDance‘s platform in the event of their music being used without a direct licence. “Starting 1 May 2024, any members who are not licensed with TikTok and would like to discuss enforcement options can contact attorneys at NMPA,” it said.