TikTok Reaches Deal With Universal Music Group Settling Royalty Dispute

B| US-ENTERTAINMENT-MUSIC-UNIVERSAL
A view of the Universal Music Group (UMG) headquarters is seen on February 9, 2021 in Santa Monica, California. - UMG and TikTok announced on February 8, 2021 a global agreement that "significantly expands and enhances the companies existing relationship" and will allow TikTok users "to incorporate clips from UMG's full catalog of music". (Photo by VALERIE MACON / AFP) (Photo by VALERIE MACON/AFP via Getty Images) F| Trump Issues Executive Orders Barring Transactions With TikTok And WeChat
WASHINGTON, DC - AUGUST 07: In this photo illustration, the TikTok app is displayed on an Apple iPhone on August 7, 2020 in Washington, DC. On Thursday evening, President Donald Trump signed an executive order that bans any transactions between the parent company of TikTok, ByteDance, and U.S. citizens due to national security reasons. The president signed a separate executive order banning transactions with China-based tech company Tencent, which owns the app WeChat. Both orders are set to take effect in 45 days. (Photo Illustration by Drew Angerer/Getty Images)
B| (Photo by VALERIE MACON / AFP) (Photo by VALERIE MACON/AFP via Getty Images) F| (Photo Illustration by Drew Angerer/Getty Images)

OAN’s Abril Elfi
2:20 PM – Thursday, May 2, 2024

TikTok and Universal Music Group (UMG) have reached a new license agreement, ending a dispute that resulted in music being removed from the social media platform.

Advertisement

On Thursday, the companies released a joint statement regarding the new deal, saying it includes “improved remuneration” for artists and songwriters under the Universal Music Group umbrella, and will ease concerns over the growth of AI-generated content on the social media app. 

Universal chairman Sir Lucian Grainge said “this new chapter in our relationship” can “drive innovation in fan engagement while advancing social music monetization.”

“The deal focuses on the value of music, the primacy of human artistry, and the welfare of the creative community,” Grainge added.

TikTok CEO Shou Chew also commented on the agreement, saying that they are committed to building something together. 

“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,” he said. 

In their joint statement, the companies claimed to be “working expeditiously to return music by artists represented by Universal Music Group and songwriters represented by Universal Music Publishing Group to TikTok in due course.”

The agreement concludes following talks that broke down earlier this year, during which, the two biggest firms in the tech and music sectors openly criticized one another in an effort to gain the upper hand.

Many were worried about losing the marketing potential that TikTok can provide when Universal, with a roster that includes some of the most popular artists of today like Taylor Swift, Drake, and Billie Eilish, ordered music from all associated musicians within its extensive publishing catalog to be removed from the app.

Millions of videos featuring Universal artists had been purposely muted on TikTok.

Although the stripped music will now be available again on TikTok, the immensely popular video-sharing app is still facing uncertainty just a week after a new U.S. law announced that it will be forced to split from its Chinese parent company, ByteDance, or risk being banned from the U.S. market altogether.

Neither UMG nor TikTok have disclosed any of the financial terms of the deal. 

Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts

Share this post!