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Whether you are a content creator, musical artist, or someonelike me who often (shamelessly) finds themselves mindlesslyscrolling through social media platforms during their free time,you have likely caught wind of the recent dispute between UniversalMusic Group ("UMG")—one of the world's largestmusic conglomerates—and TikTok, one of the fastest growing,influential, and powerful social media platforms for promotingmusic.
While this dispute may seem to some just to be another corporatespat, it's more than that; it's a showdown withwide-ranging implications for copyright law, artists' rights,and the digital realm at large.
So, what does all of this mean? Let's break itdown.
Background
On January 31, 2024, the license agreement between the twocompanies expired. Due to the inability of UMG and TikTok to cometo an agreement on the terms of a renewal, the contract wasterminated, and all copyrighted music in which UMG owned aninterest was immediately removed from the app.
UMG v. TikTok: A Matter of Greed or Principle?
The core issue between UMG and TikTok lies in the disagreementover how music should be valued and compensated on digitalplatforms. This confrontation sheds light on a larger conversationabout recent technological advances and creativity, and why itshould matter to everyone, not just those in the musicindustry.
In an open letter posted by UMG on January 30, 2024,UMG details its stance on the dispute, criticizing TikTok'sapproach to compensating artists and handling AI-generated music.UMG argues that TikTok's practices, including paying a"rate that is a fraction of the rate that similarly situatedmajor social media platforms pay," and TikTok's allegedsponsorship of "artist[s] replacement by AI", fail toadequately support the artists and songwriters whose music fueltheir platform. UMG also takes issue with TikTok's contentmoderation, underscoring the ongoing battle against copyrightinfringement and harmful content.
TikTok, on the same day, issued a response accusing UMG of putting "theirown greed above the interest of their artists and songwriters"and defending the platform as a crucial tool for artist exposurepromotion and emphasizing their efforts to reach artist-friendlyagreements with labels. TikTok accuses UMG of walking away from thenegotiating table, thereby limiting artists' opportunities fordiscovery and fan connection on the platform.
Compensation and Valuation
This debate raises questions about fair compensation in theemerging digital age. It's undeniable that platforms likeTikTok offer promotional opportunities to artists, but how do wequantify this in monetary terms? The UMG-TikTok saga prompts areevaluation of how copyright holders are compensated in a worldwhere exposure doesn't always equal financial success.
AI-Generated Content, Creative Workarounds, and a New Frontierof Legal Implications
This dispute also highlights how the emergence of AI-generatedcontent presents new legal challenges. TikTok's hosting ofAI-generated recordings, including those that impersonate realartists, raises questions about the protection of original contentagainst the backdrop of technological innovation.
Moreover, the concerns posed by UMG related to TikTok allowingAI-generated works on the platform have only been intensified dueto the removal of UMG music from the app. For example, followingthe dispute, most of the music written or recorded by TaylorSwift—an artist represented by UMG—was removed from theplatform. Subsequently, users began sharing AI-generated tracksthat replicate Swift's voice and style, including a song thatwas posted following the Superbowl, leading some to mistakenlybelieve the song was a leak from her new album and sparking debatesover the decline in the quality of her song writing.
Additionally, as creative alternatives to the UMG TikTok ban,artists have resorted to creative methods to circumvent platformrestrictions, employing techniques like pitch and tempo changes toavoid detection, although these solutions present their own set ofchallenges for linking to official music streaming platforms.
These examples are concerning as they affect the ability forhuman artists to earn royalties.
As such, these developments necessitate an update to copyrightlaws to address the nuances of AI and its implications for creativeworks.
The Role of Digital Platforms
This dispute also sheds light on the responsibilities ofplatforms like TikTok in copyright enforcement and the safeguardingof user content. It emphasizes the need for digital spaces toactively participate in copyright management and again ensure thatcreators and copyright owners are fairly recognized and compensatedfor their contributions.
Artists Caught in the Crossfire
UMG's control over the copyrights of globally renownedartists such as Taylor Swift, Drake, and Queen, amongst others,enhances its leverage at the negotiating table. However, intoday's modern era, labels including UMG have encouragedartists to utilize social media platforms such as TikTok, toamplify their visibility and prove their market potential todistributors. Thus, to an extent, UMG needs platforms like TikTokto help promote their many artists that don't already have aworld-renowned following.
As such, artists have found themselves in the crossfire of thisdispute, with many expressing frustration as their music disappearsfrom TikTok. Their frustration stems from the removal of theirmusic, not only limiting their exposure but also raising concernsabout the future of music discovery and promotion on digitalplatforms. Some artists have shared their personal struggles,highlighting the emotional and financial toll the situation hastaken on them.
For instance, artists with indirect affiliations to UMG throughcollaborations or distribution deals found their music pulled fromTikTok, disrupting their marketing strategies and affecting theirmental health. Artist @ryanoaks, who has over 800,000 monthlySpotify listeners, is not directly signed by UMG, but his labeldistributes his music through a subsidiary of UMG. He posted aTikTok on February 1, 2024, discussing how his music's removalfrom the platform—a move he had no controlover—affected him. Oaks had invested an estimated $20,000 ofhis own money promoting his music through the platform, asinstructed by his label, and now all his videos have been muted,leaving him without any potential return on his investment.
Similarly, artist @conangray, who has over 8 million followerson TikTok, humorously yet earnestly remarked in a TikTok posted byRolling Stone that "[his] career is over" andthat he will "never . . . have a hit song ever again at thisrate". He further goes on to explain that artists affected bythis will have to be creative going forward, employing strategiessuch as posting remixed covers of their songs on TikTok until thisdispute is settled.
What Now?
The UMG-TikTok face-off signals a crucial call for themodernization of copyright law and the need for new compensationmodels and copyright protections that respect creators' rightswhile adapting to the realities of the digital age.
In essence, the battle between UMG and TikTok transcends merecorporate discord, representing a watershed moment for the musicindustry. It challenges stakeholders to rethink the value of musicand creativity in the digital domain, potentially reshaping thefuture of how music is shared and monetized online.
The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circ*mstances.
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