TikTok and Universal Music Group end standoff

With promises of increased artist compensation, new monetization avenues, and tighter AI safeguards.

The battle between Universal Music Group (UMG) and TikTok over royalties and Artificial Intelligence (AI) usage has finally reached a resolution.

The two companies announced on Wednesday that they had reached a new agreement that will see UMG's music catalogue return to the platform.

As part of the deal, UMG artists and songwriters will receive improved compensation. TikTok and UMG will also explore fresh revenue streams using the platform's e-commerce features and collaborate on global artist campaigns. The agreement also emphasises industry-leading protections concerning generative AI.

"We prioritise the value of music and human artistry," said Lucian Grainge, UMG's Chairman and CEO.  "This agreement paves the way for innovative fan engagement and advances social music monetisation."

TikTok CEO Shou Chew echoed the sentiment, emphasising the app's role in music discovery and promotion.

The months-long standoff began in February when UMG pulled its music from TikTok. 

This caused significant disruptions for artists, hindering their promotional efforts on the hugely influential platform. 

While UMG's motives centred around protecting artist rights and intellectual property, the move had little impact on TikTok itself.

Presently, TikTok faces a much greater threat: potential legislation banning the app in the US due to its Chinese ownership.  

If passed, the law could see TikTok outlawed in the US as early as 2025.  

This looming crisis, along with mixed support for UMG's actions, likely motivated both sides to come to terms.

UMG's initial letter to artists justifying the ban highlighted TikTok's "vast amounts' ' of copyright infringing content and struggles with issues like hate speech and deep fakes.  

The ban ultimately proved difficult to enforce, as users can independently upload music and bypass detection software.