Impala issues open letter to TikTok seeking a strong, cooperative partnership without strong-arm tactics

25 October 2024 - Press release

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