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Universal Music Group And TikTok Agree to New Music Licensing Deal

(Pavlo Gonchar/SOPA Images/LightRocket via Getty Images; Photos from left: Gabby Jones/Bloomberg via Getty Images)

Earlier this year, Universal Music Group (UMG) removed music from its roster of artists from the popular TikTok platform due to a disagreement regarding the use of artificial intelligence (AI) and compensation. It was recently announced that an agreement has been made between the two entities, allowing music from Drake, SZA, Taylor Swift, and many others to be used on TikTok again.

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The deal is a new “multi-dimensional licensing agreement” that allows the platform access to its “global family of artists, songwriters and labels and will return their music” to TikTok.

In a written statement, Universal Music Group chairman and CEO Sir Lucian Grainge said: “This new chapter in our relationship with TikTok focuses on the value

of music, the primacy of human artistry and the welfare of the creative community. We look forward to collaborating with the team at TikTok to further the interests of our artists and songwriters and drive innovation in fan engagement while advancing social music monetization.”

The two companies were in dispute regarding compensation when UMG stated that TikTok’s proposal was at a “fraction” of typical payouts, chastising the platform for wanting to profit off the music unfairly.

“Music is an integral part of the TikTok ecosystem, and we are pleased to have found a path forward with Universal Music Group,” TikTok CEO Shou Chew said. “We are committed to working together to drive value, discovery and promotion for all of UMG’s amazing artists and songwriters and deepen their ability to grow, connect and engage with the TikTok community.”

Deadline reported that the agreement is designed to deliver better payments for the songwriters and artists under the UMG umbrella. This includes new promotional and engagement opportunities for the songs recorded and industry-leading protections concerning generative AI.

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