Months after its feud with Universal Music Group, TikTok’s music ecosystem is once again at risk.
Merlin, an organization representing over music 30,000 labels, revealed in an open letter that TikTok hasn’t renewed their collective licensing agreement, which expired on Oct. 31. Instead, according to the letter, TikTok wishes to negotiate with individual labels.
Artists potentially affected by this include Phoebe Bridgers, Mitski, Nirvana, and The Lumineers. If the deal falls through, these artists’ music could be pulled from the platform.
“Given that TikTok refused to negotiate with us, our view is that they must see the obligation to pay fair royalties as a nuisance,” the letter reads.
“Their approach suggests that they believe their objectives can be better served by fragmenting the Merlin membership, in order, we believe, to minimize their pay out.”
TikTok accuses Merlin members of ‘fraud’
In an interview with Billboard, a TikTok spokesperson said that a small number of Merlin members were engaging in “fraud.”
TikTok alleged that some Merlin members are delivering songs and remixes that the labels don’t have rights to. It’s because of this purported fraud, TikTok claims, that the company is making deals in this way.
Merlin addressed these claims in the letter, saying that Merlin has “worked productively and collaboratively with TikTok on this issue,” adding that “until now, no concerns have been raised about the approach Merlin is taking.”
According to Billboard, TikTok has directly approached Merlin members and offered to negotiate individual licensing deals provided that they sign non-disclosure agreements. Reportedly, these labels have until Oct. 4 to respond. Then, final agreements are due on Oct. 25.
“TikTok’s refusal to negotiate a deal with Merlin isn’t just a setback — it’s a threat to the whole music ecosystem,” Dr. Richard Burgess, president of the American Association of Independent Music, told Billboard.
“This isn’t just about Merlin; it’s about properly recognizing the value of artists and their music.”
