An independent music industry group accuses TikTok of boycotting collective licensing negotiations with Merlin in an effort to sign direct deals with indie label members, saying the platform is trying to divide the industry and “devalue” music. he accused.
License negotiations between TikTok and Merlin, which is negotiating digital licenses for a coalition of more than 30,000 independent labels and music companies that account for 15% of the global recorded music market, were announced late last month as “negotiations begin.” It suddenly ended because “TikTok left before”. According to a letter Merlin sent to members on Friday (September 27).
The London-based indie rights organization, whose members include labels such as 4AD, Domino, Matador, Sub Pop, Partisan, Warp, XL Recordings and Secretly Group, says TikTok will not renew its licensing agreement because: He announced that he had said that. The expiration date is October 31st, and the company was considering issuing licenses directly to members instead.
A TikTok spokesperson confirmed on Monday (October 1) that the company is “committed to working directly with the members of Merlin to keep their music on TikTok.”
One of the reasons TikTok won’t renegotiate its contract with Merlin is due to concerns about streaming fraud allegations, and a TikTok spokesperson specifically said that a small number of Merlin members may not be able to renegotiate songs or remix songs they don’t own the rights to. He told Billboard that it has something to do with what he’s streaming. To.
In response to these allegations, Merlin told members that it has been working “productively and collaboratively with TikTok” regarding streaming manipulation and fraudulent content, and that “no concerns have been raised to date.” .
Independent music industry executives and industry groups have also questioned why TikTok has not renewed its contract with Merlin and condemned TikTok’s attempt to boycott its collective license with the company.
Brussels-based independent label trade association IMPALA, which represents more than 6,000 independent music companies in Europe, has previously criticized TikTok for the low profits it pays rights holders, and is seeking to boycott Merlin. He said he strongly opposed the attempt.
“Given the timing, it is clear that TikTok’s real intention is to fragment the sector and devalue independent music rather than address streaming manipulation,” said IMPALA Streaming Group Chairman. Mark Kitkat said in a statement Thursday. October 3).
“Record labels have delegated their right to negotiate on their behalf to Merlin, and by negotiating directly with rights holders, TikTok is ignoring existing licensing agreements,” said Dan, IMPALA Digital Committee Chair. Mr. Waite added. “It’s hard to see how this works in favor of farmers, just as supermarket chains negotiate milk prices directly with individual farmers.”
Citing TikTok’s concerns about streaming operations, IMPALA executive chair Helen Smith said how exploring direct deals with Merlin members would be a better way to address the issue than renewing collective licenses. I wondered if that was the case. “Given the history, the timing, and the fact that the entire industry is working hard on this important issue, this feels like a smokescreen to boycott Merlin,” Smith said in a statement.
Gee Davey, interim CEO of the UK-based Association of Independent Music (AIM), told Billboard that “TikTok’s claim that leaving Merlin would alleviate its fraud is both technically and factually false.” It’s also wrong,” he said. She claims that TikTok already has the ability to choose which music catalog it uploads through its deal with Merlin, and that it’s up to the industry to work together, adding that “for the industry to fight online fraud, “By TikTok collaborating with Merlin again.”
“The resources required to close deals, manage a large number of independent music relationships, remove unauthorized music, and individually address fraud across large numbers of participants ensure that no profits are made. We will outperform,” Davey said. “That’s in addition to the reputational issues that arise from TikTok claiming to respect independent music but actually showing that it doesn’t respect the licensing choices of independent music businesses.
“Many smaller labels and artists will be locked out of any direct licensing. This will not only sour relationships, but will also improve fair access to markets and the diversity of music available to consumers. It would set back the efforts of Merlin, AIM, and others over the years. We urge TikTok to talk to us and consider the bigger picture. Recognize the damage caused by your inadvertence and get back to talking with Merlin.”
These sentiments were echoed by Dr. Richard Burgess, president of the American Association for Independent Music (A2IM), who told Billboard earlier this week: The entire music ecosystem. ” Burgess said the controversy was “not just about Merlin.” It’s about recognizing the value of artists and their music. ”
The Brussels-based International Music Publishers Forum (IMPF) also called TikTok’s attempts to “circumvent” collective licensing “a thinly veiled attempt to break up independent labels and drive down the price of music.” “This is an attempt,” he said, urging them to renew their contract with Merlin and conclude a licensing agreement. ”
“Merlin members entrust their rights to the organization to maintain transparency, efficiency and fair remuneration, which must be respected,” IMPF said in a statement.
Merlin is the third music organization to express challenges to renewing music licenses on TikTok this year, following Universal Music Group (UMG) and the National Music Publishers Association (NMPA). In February, UMG was unable to reach an agreement with TikTok, resulting in its entire catalog of hit songs being removed from TikTok for about three months.
In April, the NMPA also allowed the TikTok license used by many indie publishers to expire after publicly supporting UMG’s position on TikTok. Not updated. A TikTok spokesperson said many indie publishers are now establishing their own direct licenses on the short-form app.
Unless a quick resolution is found between TikTok and Merlin, or unless Merlin’s label members choose to negotiate separate licensing agreements with the ByteDance-owned platform, Nirvana, Phoebe Bridgers, Diplo and The Hit songs from artists like The Lumineers, Mac DeMarco, Madlib, Mitski, Thundercat, Wet Leg, and Coolio could start being removed from TikTok on November 1st.
