As TikTok indie track takedown looms, IMPALA calls for negotiations
With millions of independent tracks scheduled to be taken off TikTok, an open letter from European indie music trade group IMPALA calls for an end to “strong-arm tactics” and return to the negotiating table.
As TikTok indie track takedown nears, IMPALA seeks pause
Last month TikTok walked away from negotiations with Merlin, the independent trade group that represents about 15% of the global music market. It’s contract with TikTok on behalf of 30,000 indie distributors and labels including DistroKid, CD Baby, Secretly and Beggars expires on October 31st.
TikTok admitted that it was taking a divide and conquer approach that most believe will mean lower payment and less control for indies. “We know that our community of over a billion music fans value the diversity and richness that independent music brings to our platform,” TikTok said in a statement. “We are committed to entering into direct deals with Merlin members in order to keep their music on TikTok.”
So far most indies appear to publicly back Merlin, with a direct deal announced by UnitedMasters a notable acceptation. But with the deadline to accept TikTok’s new terms today and takedowns likely to begin over the weekend, the degree to which indies remain united will become apparent.
“continue to apply its current Merlin deal in its entirety”
With that as a backdrop, European independent music trade group issued an open letter calling on TikTok to “enter into good faith negotiation” and “continue to apply its current Merlin deal in its entirety to allow for good-faith collective negotiations to take place.”
“We believe this situation poses significant risks, not only to the independent music sector but also to TikTok’s long-term interests,” argues IMPALA. [Below is the full text of IMPALA’s letter to TikTok.]
UMG faced a similar battle with TikTok earlier this year. After three months of takedowns and name calling, the pair finally came to terms.
We’ll be following this story closely in the coming days. If you have been affected or just have an opinion to share we’ll be monitoring the Comments section below.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
Full text of IMPALA’s letter to TikTok
IMPALA ISSUES OPEN LETTER TO TIKTOK SEEKING A STRONG, COOPERATIVE PARTNERSHIP WITHOUT STRONG-ARM TACTICS
Brussels, 25th October 2024
On TikTok’s imposed deadline day for labels to sign direct terms to boycott Merlin, IMPALA publishes an open letter calling for collaboration and specific action points to achieve a strong, cooperative partnership without strong-arm tactics.
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
