TikTok and Universal Music Group (UMG) have ended their months-long licensing dispute, meaning hit songs from Universal artists will once again be available to users of the short-video platform. The two companies have reached a new agreement that improves artist compensation and includes stronger protections around the use of AI.
Earlier this year, Universal Music pulled its catalog from TikTok due to issues with the amount of royalties TikTok was paying. This meant that videos featuring songs from major artists such as Billie Eilish, The Weeknd and Drake were muted until a resolution was reached. The absence of such popular tracks impacted creators and user engagement on the app.
However, after negotiations, TikTok and Universal have come to an agreement. Under the new licensing agreement, Universal artists will receive higher royalty payments than before. In addition, TikTok has committed not to develop AI tools that can create music without consent.
It will also remove songs generated by AI when requested by rights holders. This helps address concerns from artists like Billie Eilish that emerging technologies could threaten human creativity.
Universal Music wrote in a blog post;
Fans on TikTok can look forward to the return of UMG’s recorded music and publishing catalogs and once again enjoy creating videos using music from some of the world’s biggest artists and songwriters as well as exciting emerging talent.
As part of the agreement, both organizations will work together to realize new monetization opportunities utilizing TikTok’s growing e-commerce capabilities and will work together on campaigns supporting UMG’s artists across genres and territories globally.
Lucian Grainge, chairman and CEO of Universal, expressed that the new deal prioritizes "the value of music, the primacy of human artistry and the welfare of the creative community." He said Universal looks forward to collaborating with TikTok to further support artists and songwriters.
Shou Chew, CEO of TikTok, noted that music is an integral part of the TikTok experience. He emphasized TikTok"s commitment to working with Universal to increase value, discovery and promotion for all of its artists and songwriters.