Universal Music Group (UMG) and TikTok have announced a new licensing agreement, putting an end to a long-running royalties dispute. The disagreement led to TikTok removing music from all UMG artists such as Taylor Swift, Billie Eilish, Drake, and Kendrick Lamar from the social media platform at the start of this year. In an open letter to the platform, UMG accused TikTok of attempting to bully and intimidate them with a licensing deal worth “far less than fair market value”.
On May 1, UMG released a statement announcing that both the parties have signed a “multi-dimensional” licensing agreement. The joint agreement confirms the return of UMG-licensed music on the social media platform and paves the way for “a new era of strategic collaboration”. UMG and TikTok will be working on monetisation opportunities such as global campaigns across musical genres and building “artist-centric” tools for UMG artists. These tools include sharing enhanced data and analytics from the Add to Music App feature, as well as building “ticketing capabilities” for fans.
TikTok also agreed to remove unauthorised AI-generated music from the platform and promises to “protect human artistry”. Sir Lucian Grainge, Chairman and CEO of Universal Music Group, shared: “This new chapter in our relationship with TikTok focuses on the value of music.” Ole Obermann, TikTok’s Global Head of Music Business Development, added: “We look forward to working together to forge a path that creates deeper connections between artists, creators, and fans while protecting human creativity”. As per the statement, both parties are “working expeditiously” to restore all UMG music in due course.
In January, UMG and TikTok ended their licensing agreement leading to a fallout between the two parties. With this new agreement, TikTok users can access UMG’s catalogue of music again. The joint strategic partnership aims to provide a deeper connection between artists and fans in a way that is beneficial for the creative community and for the future of music monetisation
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