Several major music industry organizations have criticized TikTok's decision not to renew its licensing agreement with Merlin, the independent music licensing collective.

A2IM, SAG-AFTRA, AFM, and other organizations released a joint statement condemning TikTok's approach, which requires independent labels to either accept reportedly reduced payment terms or have their music removed from the platform by October 25th.

The controversy stems from TikTok's move to pursue direct deals with independent labels rather than maintain its agreement with Merlin, which has represented smaller labels in digital platform negotiations for over 15 years. Reports indicate that TikTok's proposed terms would offer substantially lower payments compared to the previous Merlin agreement.

Key concerns raised by the organizations include:

• The lack of negotiating power for independent artists and songwriters
• Risks to cultural diversity in music
• The need for legislative action through the Protect Working Musicians Act
• TikTok's pattern of avoiding fair artist compensation

While larger independent labels are reportedly engaged in direct discussions with TikTok, smaller labels face a take-it-or-leave-it scenario. This situation follows TikTok's earlier licensing dispute with Universal Music in 2024, highlighting growing tensions between the platform and the music industry.

The Worldwide Independent Network (WIN) has also publicly criticized TikTok's negotiation tactics, emphasizing the need for fair treatment of independent artists and proper compensation for music usage on the platform.

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