Universal Music Group NV has accused TikTok, owned by ByteDance Ltd., of employing intimidation tactics and offering unfair terms in negotiations to extend their licensing agreement for artists. In a recent open letter, Universal Music highlighted fair compensation for artists and safeguards against AI-generated content diminishing royalties as primary obstacles to a new deal. TikTok responded, accusing UMG of prioritizing greed over artists’ interests. The existing agreement, expiring at the end of January, may lead to UMG withdrawing its artists’ content if an agreement isn’t reached.
UMG expressed concern about TikTok’s use of artificial intelligence tools, including its Creative Assistant, which it sees as a significant threat to artists’ rights. UMG criticized TikTok’s demand for a contractual right allowing AI-generated content to dilute the royalty pool for human artists. TikTok’s revenue accounts for only 1% of UMG sales, and the renewal offer is deemed inadequate, falling below fair market value despite TikTok’s exponential growth. UMG accused TikTok of intimidation tactics, claiming the removal of lesser-known UMG artists’ music while retaining high-profile stars on the platform was a coercive move.
