TikTok users can once again feature music from top Universal Music Group (UMG) artists in their videos, following a resolution between the social media giant and the music label over royalty payments and the use of artificial intelligence (AI) in music.
The agreement marks the end of a conflict that saw songs from some of the world's most popular artists temporarily removed from the platform.
Resolution of Royalty Dispute
(Photo : Rosa Rafael from Unsplash)
AI-generated songs are dominating TikTok nowadays, putting disrespect to the original creation of artists and singers. However, this issue, along with the royalty dispute was already solved in the new licensing deal.
In a dispute that highlighted the ongoing tensions between music rights holders and social platforms, UMG pulled its catalog from TikTok when their licensing agreement lapsed at the end of January.
According to 9to5Mac, the contention centered around the renewal terms proposed by TikTok, which UMG felt undervalued their artists and songwriters.
"The joint agreement marks a new era of strategic collaboration between the two organizations, built on a shared commitment to help UMG's artists and songwriters achieve their creative and commercial potential. 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," TikTok and UMG said in joint announcement.
UMG criticized the video-sharing platform's offer for lower royalty payments and the allowance for AI-generated versions of their songs, accusing the platform of employing bullying tactics in their negotiation strategies.
Related Article: Why a US TikTok Ban Hurts Businesses Beyond Entertainment
Return of Big Names to TikTok
The resolution of the dispute has led to the return of music from a star-studded lineup of UMG artists. If you're barred from using their previous songs last time, check them out now and see for yourself if it's now working.
Fans and creators on TikTok can once again enjoy tracks from global superstars such as The Weeknd, Billie Eilish, Drake, Cold Play, Ariana Grande, Justin Bieber, Taylor Swift, and Adele, among others.
Taylor Swift's Independent Deal
Notably, Taylor Swift, who has control over the rights to her own music, managed to negotiate her return to TikTok separately last month.
Swift, utilizing UMG solely for distribution purposes, successfully reinstated her music on the platform on April 12, CNBC reported. This independent deal highlights the growing trend of artists taking charge of their music rights at present.
TikTok and UMG Open New Licensing Agreement
With the renewal of the licensing agreement, both TikTok and UMG express enthusiasm for future collaborations.
UMG's CEO, Lucian Grainge hopes that the partnership will boost fan engagement and the advancement of social music monetization on the platform.
The deal not only restores access to popular music for TikTok creators but also sets the stage for both entities to explore new ways to enhance artist visibility and engage with the digital audience.
Ensuring Fair Compensation
The agreement reportedly meets some of the royalty demands initially sought by UMG, reflecting a compromise that acknowledges the value of artistic content while supporting the operational model of TikTok. Additionally, it also establishes guidelines on the use of AI in music creation, guaranteeing that innovations in technology are balanced with the rights and compensations due to artists and songwriters.
As for Shou Chew, the TikTok CEO, the company will continue to work together to drive "value, discovery, and promotion" for all UMG artists and songwriters. The Singaporean businessman is eager to deepen their bond with them and to the whole TikTok community.
With the TikTok ban still the centerpiece of most news, the app also faces other issues like in the case of rising commission costs for vendors since early April.
In Kyrgyzstan, the country's digital ministry prohibited access to TikTok, aiming to protect young users and their well-being from potential threats online.
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