TikTok and Universal Music Group Reach Settlement in Royalties Dispute

TikTok and Universal Music Group have reached a settlement in their royalties dispute, paving the way for the restoration of millions of songs to the platform, including those from artists like Billie Eilish and Ariana Grande.

The resolution comes after a period of tension between the two parties, during which Universal Music Group withdrew some of its artists’ music from TikTok due to disagreements over payment terms. However, the details of the settlement and the financial compensation involved have not been disclosed.

In an internal email obtained by the BBC, Universal’s CEO, Sir Lucian Grainge, announced that TikTok had agreed to “key changes,” resulting in improved compensation for artists and songwriters compared to the previous agreement.

Under the new deal, TikTok will work swiftly to restore Universal’s music catalog to the platform, a process expected to take less than two weeks. This includes reinstating audio to videos that were previously muted during the dispute.

TikTok’s head, Shou Zi Chew, emphasized the importance of music to the platform’s ecosystem and expressed satisfaction in reaching a resolution with Universal Music Group.

The settlement also addresses concerns surrounding the use of artificial intelligence (AI) to generate music on TikTok. Drake and The Weeknd, whose voices were cloned in a viral AI-generated song on the platform in 2023, will return under the new agreement, which includes industry-leading protections against unauthorized AI-generated content.

Both companies have committed to removing unauthorized AI-generated music from TikTok and improving artist and songwriter attribution. Sir Lucian hailed the deal as a step towards preventing the dilution of royalties for human artists and ensuring responsible AI development in music.

TikTok’s Ole Obermann echoed the sentiment, emphasizing the platform’s dedication to fostering musical creativity while safeguarding human artistry.

The settlement marks a significant development in the ongoing dialogue between music industry stakeholders and tech platforms regarding fair compensation and the responsible use of AI in music creation.