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TikTok and Universal Music Group Resolve Months-Long Licensing Dispute

The details of UMG's agreement with TikTok haven't been revealed, but the label said it's secured improved pay for its artists.

TikTok
Source: MEGA

TikTok and Universal Music Group have resolved their months-long licensing dispute over royalties and AI-generated music.

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Music from chart-toppers like Drake, Beyoncé and Metallica will return to TikTok after the social media giant finalized a licensing deal with Universal Music Group.

The three-month dispute began when the label declined to renew its contract with TikTok in January. UMG cited concerns like low artist pay and the presence of AI-generated music on the platform.

The financial details of the new agreement haven't been revealed, but UMG said there will be "improved remuneration" for its artists in a press release. There are also plans to pursue "new monetization opportunities" through TikTok's e-commerce business.

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TikTok
Source: MEGA

The details of the agreement haven't been revealed, but the label said it's secured improved pay for its artists.

"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 Lucian Grange 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 monetization."

UMG's entire recorded catalog was removed from TikTok in February. The company's publishing catalog was taken down the following month.

Some UMG artists supported the label's stance, but others were upset to be losing out on the vital exposure TikTok can provide.

That's why Taylor Swift's music returned to the platform last month before her new album Tortured Poets Department was released. She was able to do this because she owns her masters and publishing rights.

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"Music is an integral part of the TikTok ecosystem and we are pleased to have found a path forward with Universal Music Group," said the social media company's CEO Shou Chew.

"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."

Artists like Olivia Rodrigo, Lizzo and Lil Nas X saw tracks go viral on TikTok before their careers exploded, sometimes overnight.

The platform has also revived the careers of older musicians including Sophie Ellis-Bextor, Kate Bush and Duster.

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TikTok
Source: MEGA

'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 Lucian Grange said.

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The UMG dispute seems small in comparison with the potential ban TikTok is currently facing in the U.S.

Legislation signed by President Joe Biden last month ordered the platform's Chinese parent company ByteDance to sell its stake in TikTok. If they don't, the app will no longer be available in the U.S.

Lawmakers are concerned about ByteDance's close ties to the Chinese government. The believe that poses a national security threat to the U.S.

At the moment, it seems like ByteDance would rather shut down the app than sell.

"A U.S. ban on TikTok is a ban on the export of American culture and values to the billion people who use our service worldwide," a spokesperson for the platform told Reuters of the new legislation.

TikTok
Source: MEGA

'Music is an integral part of the TikTok ecosystem and we are pleased to have found a path forward with Universal Music Group,' said the social media company's CEO Shou Chew.

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The measure has also drawn rebukes from young Americans (many of whom spend several hours a day on TikTok) and free speech advocates like the American Civil Liberties Union.

"This is still nothing more than an unconstitutional ban in disguise," said Jenna Leventoff, the group's senior policy counsel.

"Banning a social media platform that hundreds of millions of Americans use to express themselves would have devastating consequences for all of our First Amendment rights, and will almost certainly be struck down in court. The Senate must strip these provisions from the bill."

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