TikTok and Universal Music Group Resolve Royalty Dispute Through New Licensing Agreement

The new agreement aims to offer "novel promotional and engagement opportunities" for artists and "industry-leading safeguards concerning generative AI."

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Following an extended dispute regarding royalties that led Universal Music Group (UMG) to withdraw its music catalog from TikTok, the two entities have revealed a new "multi-dimensional licensing agreement" designed to provide substantial, industry-leading advantages for UMG's global roster of artists, songwriters, and labels, while reinstating their music on TikTok's extensive global platform exceeding one billion users.

UMG's prior licensing agreement with TikTok lapsed at the conclusion of January, subsequent to unsuccessful negotiations for renewal. The record company said that it would not renew the license because of the social media platform's inadequate pay for musicians and its apprehensions regarding TikTok's inability to regulate AI-generated music. Music by UMG artists, including Taylor Swift, Drake, Ariana Grande, The Weeknd, Lady Gaga, and others, was subsequently pulled off the app for about three months.

Under the new agreement, UMG and TikTok announced the initiation of a "new era of strategic collaboration," aimed at delivering "enhanced compensation for UMG's songwriters and artists, novel promotional and engagement opportunities for their recordings and songs, and industry-leading safeguards concerning generative AI."

“Music is a fundamental component of the TikTok ecosystem, and we are gratified to have established a collaborative pathway with Universal Music Group,” stated TikTok CEO Shou Chew. “We are dedicated to collaborating to enhance value, discovery, and promotion for all of UMG’s exceptional artists and songwriters, and to strengthen their capacity to grow, connect, and engage with the TikTok community.”

Sir Lucian Grainge, chairman and CEO of UMG, stated, “This new phase in our partnership with TikTok emphasizes the significance of music, the importance of human artistry, and the well-being of the creative community.” We anticipate cooperating with the TikTok team to promote the interests of our artists and songwriters, enhance fan engagement, and advance social music monetization.

The exact timeline for the return of UMG's catalog to the app is currently uncertain.