Several music industry organizations have criticized TikTok's decision to end its licensing agreement with Merlin, calling it an attempt to avoid fair artist compensation.

TikTok has opted not to renew its agreement with Merlin, the indie music licensing collective, instead pursuing direct deals with labels. Reports indicate the new proposed terms would offer substantially lower payments compared to the previous Merlin agreement.

Independent labels face a crucial deadline of October 25th to either accept these reduced terms or have their music removed from the platform. While larger independent labels are reportedly in direct negotiations with TikTok, smaller labels are being presented with standardized contracts offering less favorable terms.

The Worldwide Independent Network (WIN) has publicly criticized TikTok's negotiation approach, expressing concerns about cultural diversity and advocating for the Protect Working Musicians Act.

A joint statement from major industry organizations including A2IM, SAG-AFTRA, AFM, and others condemned TikTok's actions, stating:

"TikTok's unwillingness to negotiate a licensing deal with Merlin is just the latest example of the platform doing whatever it can to avoid compensating artists fairly. TikTok's unprecedented action puts independent artists and songwriters in the untenable position of having no voice whatsoever in the licensing process."

The organizations emphasize the need for Congress to pass the Protect Working Musicians Act, which would enable collective negotiation rights for musicians, songwriters, and independent labels with major platforms like TikTok.

This development follows TikTok's earlier licensing dispute with Universal Music in 2024, highlighting ongoing tensions between the platform and the music industry over fair compensation for artists.

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