In a surprising turn of event, the National Music Publishers Association (NMPA) has declared that it does not intend to renew TikTok's license after it reaches its expiry next month.
TikTok's license with NMPA won't be renewed
The announcement has been circulated by the trade group to all of its members in a letter, which states, “recently, the press has highlighted concerns around TikTok’s licensing practices, concerns that NMPA has heard directly from many of our members. At this time, 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.”
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Among many other factors prompting the trade association for the US music industry, NMPA, to not renew or extend TikTok's license, low royalty payments and regulations regarding the use of AI on TikTok are found to be the most significant reasons.
If more publishers join in — including the two other major companies, Sony and Warner Chappell, have not yet done so — more music will be disappeared from the platform and more artists and songwriters will see their livelihoods impacted.
The NMPA license represents a significant number of publishers, but it is unclear which ones specifically. In the letter, the organisation encourages its members to directly negotiate with TikTok if they want to continue licensing their music on the platform. If not, the NMPA offers its assistance in discussing enforcement options.
With the backing of major companies, the NMPA has utilised its influence to secure more favorable licenses with various platforms over the years, including Pandora, Twitch, and Triller. Typically, the platforms initially resist, but ultimately reach agreements that are less favorable to them.
NMPA's letter to members
- At this time, 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.
- NMPA members should make their own business determination whether to engage directly with TikTok to negotiate a license beyond April 30, 2024.
- It is important that all NMPA members understand that without a license in place, TikTok should not be using your musical works on its platform.
- Starting May 1, 2024, any members who are not licensed with TikTok and would like to discuss enforcement options can contact attorneys at NMPA.
- If circumstances change prior to the expiration of the current TikTok licenses, NMPA will promptly notify members.
Why did UMG removed its music from TikTok?
A similar dispute, which seems to be far from getting over, led to the Universal Media Group (UMG) removing all of its music offerings it distributed or published from the chinese short-video platform.
The standoff also brought made artists losing a source of revenue and a big platform to endorse their music. The UMG said dealing with TikTok with iron fists was in favour of the artists being impacted.
The standoff between UMG and TikTok marks the first time a major music company has challenged a platform of this scale, one that claims it can succeed without the company's music.