Universal Music Group (UMG), on Monday, January 30, threatened to remove its content from TikTok after failed negotiations over royalties.

The root of the decision stems from the contract renewal negotiation between UMG and TikTok, set to expire on January 31, 2024.

In a press release on the company website, UMG cites the irresolution of two major issues TikTok has not adequately addressed: fair compensation for artistes and songwriters, and safeguarding human creativity from being exploited by AI-generated content.

According to UMG, TikTok contains more music than any other major social platform, but has proposed paying artistes and songwriters at a fraction of the rate that similarly situated major social platforms pay and currently accounts for pne per cent of UMG’s total revenue.

UMG is accusing TikTok of using intimidatory tactics in negotiations by “selectively removing the music of certain of our developing artistes, while keeping on the platform our audience-driving global stars,” and offering a deal “worth less than the previous deal, far less than fair market value and not reflective of their exponential growth”.

UMG said: “Ultimately, TikTok is trying to build a music-based business, without paying fair value for the music.”

On exploitation by AI-generated content, UMG says TikTok’s platform is flooded with AI-generated recordings and tools that enable, promote and encourage AI music creation, “and then demanding a contractual right which would allow this content to massively dilute the royalty pool for human artistes,” what UMG calles “sponsoring artiste replacement by AI”.

UMG adds that TikTok has not done enough to deal with the content that infringes on artistes’ music 

UMG said: “The only means available to seek the removal of infringing or problematic content (such as pornographic deepfakes of artists) is through the monumentally cumbersome and inefficient process which equates to the digital equivalent of playing Whack-a-Mole.”