TikTok and Universal Music Group have settled the dispute on new terms

The long-running royalty dispute between TikTok and Universal Music Group has finally come to an end. Both sides have come to an agreement that provides fair terms for both parties.

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As part of the new agreement, Universal Music Group and TikTok promise to better reward UMG artists and songwriters, as well as find new ways to promote their music. It goes without saying that Universal's music will return to the TikTok platform, which has been struggling in the U.S. and Europe.

"This new chapter in our relationship with TikTok is centred on the value of music, the excellence of human creativity and the well-being of the creative community," said the head of UMG, Lucian Grainge. For his part, TikTok head Shou Chew commented, "Music is an integral part of the TikTok ecosystem and we are delighted to have found a way forward with Universal Music Group."

The dispute began in February when Universal Music Group began removing music catalogues of artists associated with the label, including top artists such as Taylor Swift and Drake. The previous licensing agreement expired on 31 January. UMG claimed that TikTok was pressuring them to offer an insufficiently favourable agreement. TikTok responded by accusing UMG of greed, putting the interests of the artists on the back burner.

The companies have now resolved all issues and signed a new agreement. Artists will be paid fairly and their work will be protected from generative AI. Both companies are keen to pursue new monetisation opportunities as TikTok becomes the fastest growing social media platform.

Source: Universal Music