It’s the deadline day for independent labels to sign a new agreement with TikTok, if they want their catalogue to remain on the platform.
TikTok opted not to renew its licensing deal with the indie’s digital licensing agency Merlin, which runs until the end of the month. Labels need to make a direct agreement by today (October 25).
European labels body IMPALA has described it as a “boycott” of Merlin that is designed to enable TikTok to “pay less for music”.
Earlier this month, a TikTok spokesperson said there had been “operational challenges with Merlin in the past where music that is not quality controlled for copyright is delivered”.
“It presents a big burden, and doing direct deals allows us to exercise better control and also to forge closer relationships with Merlin members,” added the spokesperson.
As the deadline arrives, IMPALA’s executive chair Helen Smith has published an open letter to TikTok, calling for the restoration of collective licensing via Merlin.
“...We believe this situation poses significant risks, not only to the independent music sector but also to TikTok’s long-term interests,” writes Smith.
“TikTok is a well-loved platform, embraced by countless artists and loved by their fans across the globe,” she adds. “Independent labels and distributors have worked enthusiastically with TikTok and driven creative engagement on the platform. We are eager to work with TikTok to expand opportunities for independently released artists throughout Europe and maximise their unique role for TikTok’s users.”
You can read the full open letter below:
Dear TikTok team,
We have been in contact recently about the current issue regarding the renewal of the Merlin licensing deal and are reaching out again as we are very concerned about the impact on the European independent music community.
The expiration of Merlin’s deal with TikTok rapidly approaches and today marks the unilaterally imposed deadline for independent labels to accept TikTok’s terms.
As discussed before, we believe this situation poses significant risks, not only to the independent music sector but also to TikTok’s long-term interests.
Given the EU’s focus on such issues within its new framework for gatekeepers in digital markets, we are confident that fair and equitable solutions can be found, and we would like to discuss how to promote the diversity and sustainability of the industry while ensuring TikTok can benefit from collective licensing, as do all the other businesses with Merlin agreements.
TikTok is a well-loved platform, embraced by countless artists and loved by their fans across the globe. Independent labels and distributors have worked enthusiastically with TikTok and driven creative engagement on the platform. We are eager to work with TikTok to expand opportunities for independently released artists throughout Europe and maximise their unique role for TikTok’s users.
We believe this is a shared goal, based on TikTok’s reaction in April when IMPALA put out our statement on value: "We value the relationships and the licensing agreements we have with the independent music community across Europe. TikTok has always been a licensed service and we're proud of the successes that independent artists and businesses have found through our platform. Since the start of the year, we've seen significant global hits from artists from a range of genres and countries, from established stars to those just starting out, and this success continues to grow." (TikTok spokesperson, April 2024)
We believe the best way to build a strong and cooperative partnership with our community is to respect independent labels’ and distributors’ choice to license via Merlin and we urge TikTok to:
• Enter into good faith negotiations with Merlin with best efforts to agree licensing terms within two months, including measures in respect of fraud.
• In the meantime, and to help dispel fears in the independent community that TikTok is trying to strong-arm independents into deals, we call on TikTok to do the following:
• Continue to apply its current Merlin deal in its entirety to allow for good-faith collective negotiations to take place.
• Give independent labels and distributors the option to choose the above extension of the Merlin deal, even if they have signed or may sign an individual deal to ensure their access to the platform isn’t interrupted.
• Refrain from applying any content or algorithmic measures that would impact the visibility or remuneration of any Merlin member repertoire or artist.
Let’s work together to ensure that TikTok remains a powerful platform for creativity while supporting the growth and sustainability of the independent music sector for years to come.
Respectfully yours,
Helen Smith
Executive Chair
IMPALA – Independent Music Companies Association
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