A Battle Over Music Rights

This article was last updated on January 31, 2024

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Turmoil over Musical Rights Erupts between TikTok and Universal Music Group

As the digital age progresses, newer platforms like TikTok have to navigate tricky contracts with established players like Universal Music Group (UMG). Currently, UMG is threatening to rescind their contract with TikTok if they cannot reach agreeable terms over music rights compensation. TikTok, the increasingly popular video-sharing app out of China, might soon lose the ability to feature songs from UMG’s vast catalog. This catalog includes industry titans such as Taylor Swift, Billie Eilish, The Weeknd, Ariana Grande, Lady Gaga, amongst others.

TikTok’s Creator Community on Edge

Such drastic action from UMG will impact TikTok’s creator community significantly. The app’s viral nature, often driven by song choreographies and lip-syncing, would be hamstrung without access to chart-topping music. Essentially, video creation on the app could become starkly different and less appealing if UMG follows through on its threat.

Open Letter by UMG to TikTok Points Out Unfair Business Practices

UMG’s discontent centers around what it perceives as an unfair amount paid for compensation by TikTok for the music rights of its artists. In an open letter, UMG calls out TikTok for not agreeing to pay fair wages for the music rights. The music behemoth emphasizes that the current payments are far less than what other social media platforms provide as compensation for utilizing their artists’ music.

UMG’s Grievances and AI Factor

Remaining contentious is TikTok’s apparent use of artificial intelligence to claim ownership of newly-made music, thus sidestepping royalty payments. UMG claims TikTok uses AI to replace the voices of its artists on music created on its platform, which this undermines the artists’ incomes and dilutes the value of their creative productions.

UMG Accuses TikTok of ‘Bullying’

The corporation has accused TikTok of deploying bullying tactics to continue benefiting from their music while denying fair wages to the artists responsible for it. In the open letter, UMG alleges that TikTok’s growth has not been reflected in the payments for their catalog’s music.

TikTok’s Response to UMG’s Accusations

TikTok reacted strongly to UMG’s allegations, voicing its disappointment in what it calls UMG’s prioritization of greed over the interests of their artists and songwriters. TikTok contends that Universal profits significantly from the platform’s large user base, which exceeds a billion. It argues that UMG is forfeiting a key channel for free promotion and discovery of their talent. Indeed, certain record labels agree with TikTok’s sentiment, as they have utilized the platform as the primary channel for publicizing their songs.