TikTok’s Licensing Predicament: Expiring Music Publishers Deal Amplifies Universal Music Group Dispute

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TikTok is facing mounting pressure as it removes recordings co-written by Universal Music Group NV songwriters and approaches the end of its licensing deal with the National Music Publishers Association (NMPA) on April 30.

“We do not anticipate that there will be an option to renew or extend the current NMPA licenses or participate in a new license with TikTok through NMPA,” the association said in a letter to its members.

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In the letter, the organization urges its members to engage in direct negotiations with TikTok for continued music licensing. Alternatively, it offers assistance in exploring “enforcement options” for those who opt not to pursue direct negotiations.

“What YouTube and many other social media-type platforms discovered over time was that music was extremely important to their business model and, as their business model changes, oftentimes they need the music industry to be their partner,” David Israelite, CEO of the NMPA, said in an interview with Music Ally.

“I would hope that TikTok comes to the realization of just how important music is to the platform. But maybe it needs to play out in this way,” he added.

Meanwhile, TikTok’s parent company, ByteDance, has seen a significant revenue increase, with Q3 2023 revenues reaching $30.9 billion, nearly on par with Meta Platforms Inc‘s $34 billion for the same period, The Wall Street Journal reports.

If additional publishers, such as Sony Group Corp. and Warner Bros. Discovery Inc’s Warner Chappell, join the move, it would result in more music disappearing from the platform and further affecting the livelihoods of artists and songwriters.