Music Business: Universal strikes tech pact with TikTok against unauthorized AI

The music industry is reinventing itself in the age of artificial intelligence. At the center of this transformation is Universal Music Group (UMG), the undisputed market leader in the global music business. After intensive negotiations, the label has now concluded a new, multi-year strategic licensing agreement with the video platform TikTok.

The global deal aims to fundamentally deepen the existing legal solution, which was negotiated in 2024 after a long, hard-fought dispute. It also signals how the industry is attempting to bridge the gap between technological progress and copyright protection. The focus of the cooperation is on AI protection rights for artists and new avenues for commercial exploitation.

The expanded agreement continues to grant the global TikTok community access to UMG's extensive catalogs, encompassing both recorded music and publishing rights. However, the partnership extends far beyond simply providing songs. Both companies intend to collaborate closely to strengthen the connection between content creators and musicians through modern technologies and improved advertising opportunities.

Planned initiatives include expanded marketing and advertising campaigns, as well as the integration of e-commerce tools specifically tailored to artists' needs. The goal is to create new digital fan experiences and significantly improve the monetization of music works on the social media platform.

TikTok as the Gatekeeper of the Music Industry

The reason music labels can hardly afford to ignore the video app today is its enormous market power for short videos. It has long been a significant factor in the global music business. A viral trend on TikTok can catapult songs to the top of global streaming charts virtually overnight. An example of this phenomenon is the hit “Barbaras Rhabarberbar” by cabaret artist Bodo Wartke and music producer Marti Fischer. The rap song, based on a German tongue twister, became a global hype on the platform.

Triggered by a synchronized choreography by two Australian TikTokers, users around the globe celebrated the accompanying “rhubarb dance” with millions of video views. This went so far that the song temporarily appeared in the international Spotify Viral charts and even attracted the attention of The New York Times: it reported with astonishment that the silly German wordplay briefly even overtook US pop star Beyoncé on some services.

Against this backdrop, a cornerstone of the new deal is the joint commitment to strict AI protection measures designed to prioritize human creativity. Given the rapid spread of generative music online, TikTok and UMG commit to consistently removing unauthorized, AI-generated songs from the platform. This is intended to ensure that the economic proceeds from the platform continue to reliably benefit the actual human creators, such as singers, composers, and songwriters.

AI Agreement also with Spotify

The agreement also provides for optimizing the technical attribution of artists to prevent incorrect attributions. Universal Music's management emphasizes the pioneering work the label is doing together with TikTok to protect and strengthen human artistic creation in the digital space. TikTok, on the other hand, highlights its own role as a global interface for music discovery, where artists are to receive new career opportunities through the cooperation.

The TikTok agreement is part of a broader digital strategy by the music company. Just a few days ago, UMG also reached a licensing agreement with the streaming service Spotify. While the focus with TikTok is primarily on combating unlicensed AI content, under this separate agreement, UMG allows the Swedes to introduce their own generative AI music models for premium users based on artist consent.

(hze)