TikTok: Terminates negotiations with Merlin over streaming fraud concerns

It’s true: MBW confirmed it TikTok Recently abandoned re-licensing negotiations merlineven though the indie group’s current contract with the ByteDance platform expires on October 31st.

In exchange for signing a comprehensive contract with Merlin, TikTok Inviting individuals instead merlin Members negotiate licensing agreements directly with the team.

merlin claim that its members represent 15% Global recorded music consumption by market share. So why? TikTok Will you walk away from the negotiating table?

The reason is somewhat shocking. As the industry debate over streaming fraud continues to grow, TikTok has questioned the legitimacy of music distributed on the platform by certain companies. merlin member.

At this point, it’s important to clarify three things:

1. Merlin’s Membership scope Tens of thousands of labels and distributors in Almost all major regions all over the world;
2. According to sources, merlin Members you are interested in TikTok It primarily involves the intentional uploading of manipulated (i.e. sped up or slowed down) versions of copyrighted audio (a trend MBW investigated earlier this year).
3. A significant amount of this activity TikTok inside merlin Our members come from three world regions. Eastern Europe, Latin Americaand Southeast Asia.

a TikTok A spokesperson told MBW this evening that the platform was “experiencing operational issues”. merlin In the past, music was distributed without copyright management. [to TikTok].

“This is a big commitment, but dealing directly gives us better control and allows us to build closer relationships with Merlin members.

“TikTok You should be able to control the quality of content uploaded to your platform and ensure that all content distributed is authentic.

“We believe it will give us better control over the catalog of music being uploaded. merlin If you trade directly rather than doing one big collective trade, it can impact your members.

“In the past, we’ve had issues with some of the music offered through that bulk deal from a fraud perspective.”

When I talked to MBW, Ole Obermann Global Head of Music Development and Intellectual Property TikTokcommented: “This is not a story about bad blood with him merlin. By dealing directly with us, you can directly address any copyright issues we detect with your content. It’s that simple. ”

merlin told members in a letter last week: TikTok “Refused to negotiate” a new license agreement before the expiration date TikTok/Marlins Contract as of October 31st.

merlin claimed that TikTok “He left before negotiations began” and “there was no warning.”

In a letter issued to Merlin members, seen by MBW, the group cited TikTok’s “concerns” about streaming.scam” was cited as the reason for the decision to terminate the contract.

merlin said in the letter that the company has been “incredibly proactive on this issue” and “recognized early on the concerning growth and impact of stream manipulation and unauthorized content and communicated with TikTok.” insisted. TikTok And across the market. ”

Streaming fraud continues to be a major headache for the music industry. This action threatens to siphon funds from the streaming business that would otherwise go to legitimate artists and rights holders.

In Q1 2024, Spotify introduced a policy that imposes financial penalties. label and distributor For each trackflagrant artificial streaming” was detected on the content, and the company stated that this works as “ ”.deterrence” I oppose artificial streaming.

Law enforcement agencies around the world are also starting to take streaming scams very seriously.

Just last month, the U.S. government charged an individual with three felonies in connection with the charges. 10 million dollars “The plan is to create hundreds of thousands of songs with artificial intelligence and use automated programs called ‘bots’ to stream the AI-generated songs billions of times.”

In March, a man Denmark He was found guilty of data fraud and copyright infringement and sentenced to 18 months in prison. The man allegedly used a bot to artificially inflate the number of streams for 689 songs he uploaded to the streaming platform.

“We have taken steps to combat illegal activity and content, including automated systems that detect suspicious activity, and to address the issue and ultimately suspend the membership of bad actors. A dedicated team to impose sanctions, including

merlin

merlinabout the collapse in a letter sent to members last week. TikTok During the meeting, the company said it had “worked productively and collaboratively with TikTok” on the issue of streaming fraud, adding: “To date, no concerns have been raised about Merlin’s approach.”

The letter added: Automated system to detect suspicious activity. and a dedicated team to address issues and ultimately impose sanctions, including terminating the membership of bad actors. ”

TikTok A spokesperson added today: “TikTok has the utmost respect for the independent music community and artists and is committed to bringing music from around the world to our platform.”

They added: “By working directly, we [with Merlin members] This will help avoid confusion.

“Labels that want their music to continue to be available on TikTok after October 31st only need to review and sign a contract between TikTok and CapCut by October 25, 2024.

“This means that your content will not be removed, your content will not need to be redistributed, and your catalog will remain on the platform beyond November 1, 2024.”world music business