Photo Credit: IMPALA
The deadline for indie labels to sign direct deals with TikTok (or see their catalogs pulled) is here, and IMPALA is upping the pressure by publicly calling for “a strong, cooperative partnership without strong-arm tactics.”
Criticized by IMPALA as a “unilaterally imposed deadline,” that direct deal cutoff has been in place since the underlying Merlin-TikTok split came to light – though the contract itself won’t expire until October 31st.
We’ve covered the showdown every step of the way, but in a nutshell, TikTok has pointed to purported fraud-detection shortcomings as one of the reasons behind its non-renewal decision.
Unsurprisingly, the indie music community has a vastly different view of the episode. TikTok, a growing number of organizations have alleged in more words, is simply avoiding good-faith negotiations in an effort to pay less for music.
Meanwhile, reports have indicated that TikTok is participating in actual talks with larger indies and simultaneously sending smaller players standardized take-it-or-leave-it contracts. As laid out by several sources, the latter contracts include less lucrative terms than under the Merlin agreement.
In keeping with that description of the multifaceted situation, Merlin member UnitedMasters yesterday went ahead and finalized a direct pact with TikTok.
And it’s against this less-than-ideal backdrop, complete with the TikTok-UnitedMasters tie-up and the more urgent deadline for Merlin members to make licensing decisions, that Brussels’ IMPALA is speaking out in a new open letter.
Penned by executive chair Helen Smith, the concise message retreads a good amount of ground already covered in prior IMPALA takes on the TikTok-Merlin split. The “situation poses significant risks, not only to the independent music sector but also to TikTok’s long-term interests,” reads one relevant line.
However, much of the document looks beyond these risks in favor of striking a conciliatory tone when addressing the possibility of an extended TikTok-Merlin union. IMPALA is “confident that fair and equitable solutions can be found” and still believes that “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,” IMPALA’s letter proceeds. “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.”
As to where IMPALA wants things to go from here, TikTok should effectively leave the existing Merlin deal in place for two extra months – or abstain from ripping down works not covered by a new agreement, that is – while entering “into good faith negotiations with Merlin with best efforts to agree licensing terms.”
Said negotiations would include discussions about the previously mentioned fraud, per the text. Additionally, as the organization sees it, TikTok should hold off “from applying any content or algorithmic measures that would impact the visibility or remuneration of any Merlin member.”
In light of the appropriate contract’s October 31st expiration, the coming week will reveal whether the entreaty sets the stage for a fresh pact (or at least fruitful discussions). Judging by the lack of related complaints on social media – more than a few TikTok diehards and Swifties promptly lamented the temporary absence of different music earlier in 2024 – the platform doesn’t appear to have started pulling the involved catalogs.