The long-standing dispute between Universal Music Group (UMG) and TikTok regarding royalties and the use of Artificial Intelligence (AI) has finally been resolved.
Both companies announced on Wednesday that they had reached a new agreement, leading to the return of UMG’s music catalog to the platform. This agreement includes improved compensation for UMG artists and songwriters.
Additionally, TikTok and UMG will explore new revenue streams utilizing the platform’s e-commerce features and collaborate on global artist campaigns. Notably, the agreement also includes robust protections regarding generative AI usage, setting an industry standard.
Lucian Grainge, UMG’s Chairman and CEO, emphasized their commitment to valuing music and human artistry, stating, “This agreement paves the way for innovative fan engagement and advances social music monetization.” TikTok CEO Shou Chew echoed this sentiment, highlighting the app’s integral role in music discovery and promotion.
The standoff began in February when UMG removed its music from TikTok, causing disruptions for artists seeking to promote their work on the influential platform. While UMG aimed to protect artist rights and intellectual property, the move had minimal impact on TikTok itself.
Currently, TikTok faces a more pressing threat: potential US legislation banning the app due to its Chinese ownership, potentially as early as 2025. This looming crisis, combined with varying support for UMG’s actions, likely motivated both parties to reach an agreement.
UMG’s initial justification for the ban cited TikTok’s challenges with copyright infringement and issues like hate speech and deep fakes. However, enforcing the ban proved challenging, as users could independently upload music and circumvent detection software.
