TikTok & Universal Music Group Reach A New Licensing Agreement

TikTok / UMG

After a three-month dispute, TikTok and Universal Music Group (UMG) have reached a new licensing agreement. This deal will restore music from UMG's artists, songwriters, and labels to TikTok in the coming weeks. UMG will also gain:

  • Access to TikTok’s technology, marketing, and promotional capabilities

  • Improved remuneration for artists and songwriters

  • New promotional opportunities

  • 'Industry-leading protection' with respect to generative AI

Why It Matters: As anticipated, TikTok and UMG have found a path forward while still securing other partnerships. Though details are broad, the new agreement appears to address the primary concerns outlined in UMG's open letter regarding low artist royalties and TikTok's investment in potentially harmful AI tools, to the benefit of artists and songwriters.

Creators and fans should also be happy. Previously muted videos will regain their sound, allowing them to be enjoyed as originally intended, and they’ll have access again to music from the world’s biggest artists for future content creation.

Caution for Creators: Despite this, creators be cautious about relying too heavily on licensed music for their videos and balance it out with original audio. As TikTok's revenue rises, UMG or other music labels may let their licensing agreements expire to negotiate better terms, putting creators in similar situations in the future.

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