As TikTok's deadline for indie labels to sign direct deals arrives, IMPALA is intensifying its stance against what it calls "strong-arm tactics" from the social media platform.

The core issue stems from TikTok's decision not to renew its contract with Merlin, which expires October 31st. TikTok cites fraud-detection concerns, while indie labels argue this is an attempt to negotiate lower rates for music usage.

Key developments:

• TikTok is engaging in direct talks with larger indies while sending standardized contracts to smaller labels
• The new contracts reportedly offer less favorable terms than the existing Merlin agreement
• UnitedMasters has already signed a direct deal with TikTok

IMPALA's executive chair Helen Smith emphasizes in an open letter that the current situation poses risks for both the independent music sector and TikTok's future. The organization calls for:

1. A two-month extension of the existing Merlin deal
2. Good faith negotiations addressing fraud concerns
3. No content or algorithmic measures affecting Merlin members' visibility or compensation

Despite the tensions, IMPALA maintains that TikTok remains "a well-loved platform" and expresses confidence that "fair and equitable solutions can be found" through cooperative partnership.

The coming week will be crucial in determining whether these negotiations lead to a new agreement before the October 31st deadline.

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