Universal Music Group And TikTok Resolve Their Dispute

(CTN News) – There has finally been a resolution to the conflict between Universal Music Group (UMG) and TikTok over royalties and the use of Artificial Intelligence (AI).

UMG’s music catalogue will once again be available on the platform due to a new agreement between the two companies announced on Wednesday.

As a result of the agreement, UMG’s artists and songwriters will receive improved compensation. Additionally, TikTok and Universal Music Group will explore new revenue streams by utilizing the platform’s e-commerce features and working together on global artist campaigns. The agreement also emphasizes the establishment of industry-leading protections for generative artificial intelligence.

As Chairman and CEO of Universal Music Group, Lucian Grainge said, “the value of music and human artistry is paramount to us.”.  Grainge said that the agreement will provide a platform for fan engagement and social music monetization advancements.

The CEO of TikTok, Shou Chew, expressed the same sentiment, highlighting the importance of the app for discovering and promoting music.

As a result of Universal Music Group’s removal of its music from TikTok in February, a months-long standoff began.

Due to this, artists were adversely affected, hindering their efforts to promote their music on one of the most influential platforms in the world.

While Universal Music Group’s motives were to protect the rights of artists and intellectual property, TikTok itself was little affected by the move.

There is a much greater threat to TikTok at present: the possibility of legislation banning the app in the U.S. based on its Chinese ownership.

In 2025, TikTok may be outlawed in the US if the law passes.

As a result of the looming crisis, as well as mixed support for UMG’s actions, both sides were likely motivated to reach an agreement.

Initially, Universal Music Group’s letter to artists justified the ban by emphasizing TikTok’s vast amount of copyright infringements. It also highlighted its struggles with issues such as hate speech and deep fakes.

However, the ban has proved challenging to enforce, since users are able to upload music independently and bypass software designed to detect it.

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