Universal Music Turns Off in Licensing Fee Dispute with TikTok

In the struggle for fair licensing fees, Universal Music takes a drastic step by removing its own songs from the popular video app TikTok. The measure affects chart-toppers like Taylor Swift and Drake, whose hits are no longer available for the accompaniment of video clips—a response to failed negotiations over an extension of licensing agreements with the platform. For users and artists, this move brings noticeable limitations: expiring licenses now result in a silent backdrop for already published videos that were set to the affected songs. The fronts are hardened: Universal Music contends that TikTok offers only a fraction of the usual online remunerations and also wishes to promote music generated by Artificial Intelligence independently. Moreover, the music giant criticizes the platform's inadequate piracy combat and inefficient processes for removing illegal content. TikTok, boasting a clientele of over a billion users, counters by lamenting a greedy stance from Universal that comes at the expense of creatives and fans. The fronts appear hardened, and an early resolution is not in sight. The musical treasure troves of the Universal Music Publishing Group may also soon run dry—a warning that could have extensive consequences for TikTok. Despite all the disputes, the central question remains: who will ultimately come out worse: the users, the platform, or the musicians whose creative works have become pawns in the licensing poker game? Universal Music hails from an industry that traditionally wrestles with digitization and its excesses. The row sets a precedent in the global fight for adequate remuneration for artistic work in the digital space. For TikTok, which is operated by the Chinese Bytedance corporation and typically bases itself in the Cayman Islands with Western investors, it could be a wake-up call forcing a reassessment of responsibility towards the creative economy.