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Why Is UMG Removing Its Artists From TikTok?

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If you’ve been on TikTok anytime in the past couple of days, the odds are high you’ve seen some of your favorite creators fretting about an upcoming change that could result in devastating potentially millions of videos on the platform. If TikTok can’t reach a deal to renew its music licensing agreement with Universal Music Group, the label says it plans to pull its entire catalog from the app, resulting in any video utilizing UMG artists’ songs to be muted, beginning when the agreement expires today. Otherwise, TikTok could open itself to legal liability for copyright infringement. So…

Why Is UMG Removing Its Artists From TikTok?

In an open letter published on the company’s website on Tuesday (January 30), UMG expresses a number of concerns about an ongoing partnership with the app. Chief among them is ensuring fair monetary value for its artists’ work as TikTok seeks to launch its own music-based business (naturally). Meanwhile, UMG also says it has concerns about hate and harassment on the app and TikTok not taking a firm stance when it comes to “AI”-generated works, a controversial topic these days.

UMG alleges that “TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay” and that it “demanded a contractual right which would allow [AI] content to massively dilute the royalty pool for human artists.” This is while TikTok itself is developing AI tools that’d make it easier to do so.

Labels under UMG include Interscope and its subsidiaries, the Capitol Music Group umbrella, Republic Records, Island Records, Def Jam, and more. UMG artists include some of the biggest in the world: Ariana Grande, Bad Bunny, Billie Eilish, Drake, Elton John, Kendrick Lamar, Post Malone, SZA, Taylor Swift, and more.

However, pulling these acts from TikTok could be risky for the label as well; the app has increasingly become one of the biggest drivers for new singles and artists to gain popularity. For example, JID, who is signed to Dreamville under Interscope, has experienced a massive surge of interest in his song “Surround Sound” due to a TikTok trend in which creators tape their phones to their ceilings and dance under them (it’s sillly, but hey, it works). Meanwhile, older songs often find second lives on the app, such as The Weeknd’s “Die For You” and Miguel’s “Sure Thing.”

TikTok itself pointed this out in its response, telling Billboard, “It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters. Despite Universal’s false narrative and rhetoric, the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent. TikTok has been able to reach ‘artist-first’ agreements with every other label and publisher. Clearly, Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.”

TikTok recently agreed to a licensing deal with Warner Music Group (of which Uproxx is an independent subsidiary) last July, allowing TikTok to use its catalog on the TikTok Music platform, saying that the deal would benefit artists. It remains to be seen how UMG pulling out will affect its business and artists, but TikTok wouldn’t be getting away unscathed, as a huge part of the appeal for its users is supporting their videos with popular music.

R. Kelly & UMG Ordered To Pay $500K In Victim Restitution From Royalties

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It seems like, despite R. Kelly’s failure to comply with victim restitution, the court is still able to get the money victims deserve. Moreover, according to legal documents obtained by TMZ Hip Hop, a judge signed an order into effect that garnished $500K from the convicted singer’s royalties amid his twenty-year prison sentence for sex crimes. Apparently, Universal Music Group held a lot of his royalties and hadn’t yet paid this amount in victim restitution, for which legal authorities had to intervene. In addition, reports suggest that much of these unpaid royalties stem from the R&B artist’s older hits that UMG hadn’t cashed in yet. Specifically, the company has over $567K in royalties.

Furthermore, this would cover R. Kelly’s outstanding debt of $506,950.26 to victims- and then some. Of course, these royalties mostly relate to his past material because, when it comes to new music, the Chicago native did not see a lot of success. Labels and imprints quickly dropped him among his trials and controversies. Regardless, many fans still hold on to his classics and big tracks, and even with all of this legal reckoning in mind, they still hold a lot of weight for listeners.

Read More: R. Kelly Accuses Prison Of Neglecting His Medical Needs: “I’m Scared For My Life”

R. Kelly In Court

R Kelly Garnish 500K Royalties Victims Hip Hop News
CHICAGO, IL – SEPTEMBER 17: Singer R. Kelly appears during a hearing at the Leighton Criminal Courthouse on September 17, 2019 in Chicago, Illinois. Kelly is facing multiple sexual assault charges and is being held without bail. (Photo by Antonio Perez – Pool via Getty Images)

In fact, the 56-year-old’s chances of ever returning to the musical realm seem quite slim. While many support him in terms of still listening to and praising his music, they also acknowledge that things are too far gone. Dame Dash is one of many industry titans who spoke on the R. Kelly situation and thought justice came to light. “I think he’s where he belongs,” the Roc-A-Fella affiliate explained. “I know Aaliyah, so I know what he did, I can’t be objective about that, you know what I’m saying? But he definitely seemed like he needed some help.

“I couldn’t believe [Jay-Z] did a project with R. Kelly knowing that he had r*ped my girl,” he added. “I was like, ‘Just don’t put my name on that, I don’t want no money from that. If it is, put it to Aaliyah foundation.’ Like, they did this s**t twice.” For more news and the latest updates on R. Kelly, come back to HNHH.

Read More: Boosie Badazz Would Take R. Kelly Over Michael Jackson In A Verzuz

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The post R. Kelly & UMG Ordered To Pay $500K In Victim Restitution From Royalties appeared first on HotNewHipHop.

Spinrilla Shuts Down & Is Ordered To Pay $50 Million in Piracy Damages

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The iconic hip-hop mixtape website, Spinrilla, has shut down after a judge ordered the company to pay $50 million in piracy damages and other fees. Universal Music, Warner Music, and Sony Music, as well as other major record labels, filed the complaint against the website in documents obtained by Billboard. The order names Spinrilla founder Jeffrey Dylan Copeland.

“Through the Spinrilla website and apps, users with an artist account can upload content that any other user can then download or stream on demand for free, an unlimited number of times,” the RIAA’s lawyer James Lamberth writes in the complaint. “A substantial amount of content uploaded to the Spinrilla website and apps consists of popular sound recordings whose copyrights are owned by Plaintiffs.”

UMG Files Complaint Against Spinrilla

UKRAINE – 2021/06/04: In this photo illustration, Universal Music Group (UMG) logo is on a smartphone and pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

The RIAA itself also issued a statement regarding Spinrilla. “Spinrilla specializes in ripping off music creators by offering thousands of unlicensed sound recordings for free,” the company said. “Fans today have access to millions upon millions of songs from innovative platforms and services that pay creators — this kind of illicit activity has no place in today’s music marketplace.”

The complaint further accuses Spinrilla of having “knowingly contributed to, profited from, and induced, the widespread infringement of Plaintiffs’ sound recording copyrights through the Spinrilla website and apps.” The settlement additionally states that Copeland must pay “$50,000,000, inclusive of any recoverable costs and attorneys’ fees.” He has five days to shut down his site. He’ll have to transfer the website domain registration to the property of the record companies, although they can’t use it.

Fans on Twitter were sad to see the iconic mixtape website meet its end. “Spinrilla got me thru highschool,” one fan wrote. Another tweeted, “Damn RIP Spinrilla [heartbreak emoji]. You made my early years in college lit.” Spinrilla isn’t the only mixtape website that has been experiencing business troubles. There were also rumors that Datpiff was also shutting down this year, but the company later clarified they were only making changes to their website.

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More A.I. Drake Songs Surface Amid UMG’s Attempted Takedown

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More A.I. songs using Drake’s vocals are surfacing online after Universal Music Group called for them to be taken down. One new song is titled “winters cold,” as caught by TMZ, while another is labeled “Not a Game.” Their release comes after a viral A.I. song featuring Drake and The Weeknd went viral on social media, earlier this week.

As for UMG’s stance on the matter, the company wrote in a statement released on Tuesday that they are typically in favor of innovation in the arts. This case, however, is different. “With that said, however, the training of generative AI using our artists’ music (which represents both a breach of our agreements and a violation of copyright law) as well as the availability of infringing content created with generative AI on DSPs, begs the question as to which side of history all stakeholders in the music ecosystem want to be on: the side of artists, fans and human creative expression, or on the side of deep fakes, fraud and denying artists their due compensation,” the statement reads.

Drake At The Grammys

LOS ANGELES, CA – FEBRUARY 10: Drake accepts the Best Rap Song award for ‘God’s Plan’ onstage backstage during the 61st. Annual GRAMMY Awards at Staples Center on February 10, 2019 in Los Angeles, California. (Photo by Kevin Mazur/Getty Images for The Recording Academy)

The statement continues: “These instances demonstrate why platforms have a fundamental legal and ethical responsibility to prevent the use of their services in ways that harm artists. We’re encouraged by the engagement of our platform partners on these issues–as they recognize they need to be part of the solution.”

Copyright law on the matter is still tricky. There are currently no regulations to dictate what AI can legally train. The US Copyright Office has, however, released a statement of guidance on the matter. As noted by CNN, they wrote: “In the case of works containing AI-generated material, the Office will consider whether the AI contributions are the result of ‘mechanical reproduction’ or instead of an author’s ‘own original mental conception, to which [the author] gave visible form.’”

It appears that, for now, the floodgates are opening for more A.I. songs being released using artists’ likenesses. While “Heart on my Sleeve,” came from an anonymous TikTok user named Ghostwriter977, the origin of the new songs is unclear. Check out “winters cold” below.

Another A.I. Drake Song

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UMG Addresses Viral Drake & The Weeknd A.I. Song

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Universal Music Group has responded to the viral A.I.-generated song by Drake and The Weeknd that has been blowing up on social media. The company labeled the use of their artists’ vocals for A.I. music “fraud” and called on streaming platforms to ban the technology. The A.I. song is titled “heart on my sleeve” and has reached over 230,000 plays on YouTube and more than 630,000 streams on Spotify.

In its statement released this week, UMG explained that it has made a living by embracing new technology, but this is a step too far. “UMG’s success has been, in part, due to embracing new technology and putting it to work for our artists–as we have been doing with our own innovation around AI for some time already,” the statement begins.

Drake & The Weeknd

NOTTINGHAM, UNITED KINGDOM – MARCH 16: Drake and The Weeknd perform onstage during a date of Drakes “Nothing Was the Same” 2014 World Tour at Nottingham Capital FM Arena on March 16, 2014 in Nottingham, England. (Photo by Ollie Millington/WireImage)

The company continues: “With that said, however, the training of generative AI using our artists’ music (which represents both a breach of our agreements and a violation of copyright law) as well as the availability of infringing content created with generative AI on DSPs, begs the question as to which side of history all stakeholders in the music ecosystem want to be on: the side of artists, fans and human creative expression, or on the side of deep fakes, fraud and denying artists their due compensation. These instances demonstrate why platforms have a fundamental legal and ethical responsibility to prevent the use of their services in ways that harm artists. We’re encouraged by the engagement of our platform partners on these issues–as they recognize they need to be part of the solution.”

In response to the backlash, several platforms, including Apple Music, Deezer, and TIDAL, have already pulled “heart on my sleeve.” Drake has also commented on the use of his likeness for A.I., writing on Instagram, “This is the final straw AI.” No regulations currently exist to dictate what AI can legally train. The US Copyright Office has, however, released a statement of guidance on the matter. As noted by CNN, they wrote: “In the case of works containing AI-generated material, the Office will consider whether the AI contributions are the result of ‘mechanical reproduction’ or instead of an author’s ‘own original mental conception, to which [the author] gave visible form.’”

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Pete Rock Slams A.I. Music: “It’s Mad Disrespectful”

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Pete Rock labeled A.I.-generated music “mad disrespectful” on Twitter, Sunday morning. The post came after a song created by artificial intelligence that mimicked Drake and The Weeknd went viral on social media. The iconic hip-hop producer clearly isn’t a fan.

“AI is mad disrespectful and if y’all dont see that but think this AI stuff is dope then you are a part of the problem,” he wrote in the post. “They cant beat Black culture, so what do they do when they cant measure natural talent? Silly shit like AI! AI is such a cowardly act that bears no real soul or feeling.”

Pete Rock Performing At SXSW

AUSTIN, TX – MARCH 14: Pete Rock performs during Salaam Remi Presents: Louder Than Life at Remedy during SXSW 2014 on March 14, 2014 in Austin, Texas. (Photo by Rahav Segev/Getty Images)

Fans had mixed responses to Rock’s post. One disagreed while still praising his talents as a producer: “I don’t get why @peterock is so hot about AI. Do you think AI can really dig into crates like you and sample and remix songs that haven’t even been digitized. I understand why vocalist would be hot. But no AI could ever match Pete Rock and @REALDJPREMIER. Why you salty?” Another was in full agreement with Rock: “I agree with you 100% @PeteRock. If Artificial Intelligence existed in the 1970s there would be no Hip Hop today.”

Rock is far from the only artist to criticize the use of A.I. in music creation. Drake also complained after the fake song of his went viral. “This is the final straw AI,” Drake wrote online. Universal Music Group also shared a statement to the Financial Times revealing that they plan to take legal action. “We have a moral and commercial responsibility to our artists to work to prevent the unauthorized use of their music and to stop platforms from ingesting content that violates the rights of artists and other creators,” the company said. “We have become aware that certain AI systems might have been trained on copyrighted content without obtaining the required consents from, or paying compensation to, the rightsholders who own or produce the content.”

Pete Rock’s Take On A.I.

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The Game’s Sexual Assault Accuser Goes After UMG

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The Game’s sexual assault accuser, Priscilla Rainey, is now targeting the rapper’s label, Universal Music Group. She previously won a $7.1 million judgment against Game, but claims he only paid $383,502.39 of the royalties he owes. Rainey is hoping that UMG will help her receive the rest.

“Rainey respectfully requests that a post-judgment writ of garnishment be issued commanding Universal Music-MBG NA LLC, the Garnishee named above, to answer the writ of garnishment according to law, along with such other and further relief as this Court deems just and proper,” court documents obtained by AllHipHop read.

NEW YORK, NY – SEPTEMBER 21: (EXCLUSIVE COVERAGE) Rapper The Game visits the SiriusXM Studios on September 21, 2016 in New York City. (Photo by Astrid Stawiarz/Getty Images)

Rainey alleges that The Game sexually assaulted her while she was a contestant on the reality show, She’s Got Game. When she made the accusation in 2015, she explained that she believed herself to be on a “required after-hours date”. The Game allegedly got drunk and forced “his hand inside her dress to rub her bare vagina and buttocks.”

In 2019, a judge granted Rainey $7.1 million in post-judgment interest. The Game was to fork over his royalties until reaching the figure.

More court documents read: “Any and all rights, title, and interest of Defendant from the following companies in the form of, among other things, commission, royalties, contract receivables, deferred compensation, income, wages, payroll, salary, and accounts receivable: Sound Exchange, Inc., 733 10th Street NW, 10th Floor, Washington, D.C. 20001; and Entertainment One U.S. LP, Attn: Michael Healy, 22 Harbor Park Drive, Port Washington, NY 11050.”

The Game has previously stated that he doesn’t intend to pay up while Rainey accuses him of trying to hide his money. Last year, Rainey claimed Game was hiding royalties from a collaboration with Kanye West.

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Dr. Dre Close To Finalizing $200M+ Deal Including Music Assets: Report

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Dr. Dre is close to reaching an agreement in finalizing a deal that’s worth $200M, according to Billboard.

Dre’s selling a packaged deal to UMG and Shamrock Holdings that includes music income streams and owned music assets. The Emmy Award winner‘s assets, which reportedly generate $10M annually, are being sold in two separate deals to the companies.

INGLEWOOD, CALIFORNIA – FEBRUARY 13: Dr. Dre performs during the Pepsi Super Bowl LVI Halftime Show at SoFi Stadium on February 13, 2022 in Inglewood, California. (Photo by Kevin C. Cox/Getty Images)

Sources close to the situation claim that the deal with Shamrock includes artist royalties from a pair of solo albums, as well as shares from his royalties from N.W.A. Additionally, sources said his producer included his royalties and writer’s share of his song catalog (the ones where he doesn’t own publishing) in the deal. The writer’s share could include songs from The Chronic.

UMG’s potential deal with Dre could include the ownership of the master recording of The Chronic. Additionally, Dre’s also including his share of Kendrick Lamar’s releases under Aftermath/Interscope’s deal with Top Dawg Entertainment. However, sources did not specify the songs included in the bundle. It should be noted his ownership stake in Aftermath isn’t offered as part of Dre’s assets for sale.

NEW YORK, NY – FEBRUARY 12: Dr. Dre at Madison Square Garden on February 12, 2015 in New York City. (Photo by Shareif Ziyadat/WireImage)

Shamrock Holdings could reportedly snag 75% to 90% of the revenue from Dre’s packaged deal. At the same time, UMG could possibly gain 10% to 25% of the remaining package, consisting of revenue from owned assets.

There are conflicting reports surrounding the number attached to the deal. The asking price is upwards of $250M but sources close say that Dre will likely get closer to $200M. Ultimately, the deal seems to be anywhere between the two figures.

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Black Sheep Files $750Mil Lawsuit Against UMG Over Unpaid Royalties: Report

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Usually, it’s good to hear about iconic Rap groups, but Black Sheep isn’t surfacing for a walk down Hip Hop’s memory lane. Instead, the classic duo—which includes Andres “Dres” Vargas Titus and William “Mista Lawnge” McLean—is reportedly suing Universal Music Group. According to a report by Rolling Stone, the pair have filed a $750 million class action lawsuit against UMG over unpaid royalties.

Black Sheep claims that UMG worked out a deal with Spotify that shortchanged artists in the long run. Universal is accused of exchanging music from artists for cash and Spotify stock.

Read More: Universal Music Sued Over Royalty Payouts For Kanye West’s “Power”

The rappers also allege they weren’t advised of this side deal; thus, it violates their contract with UMG’s subsidiary, Polygram.

“In the mid-2000s, Universal struck an undisclosed, sweetheart deal with Spotify,” the lawsuit reportedly reads. “Universal agreed to accept substantially lower royalty payments on artists’ behalf in exchange for equity stake in Spotify – then a fledgling streaming service.”

“Yet rather than distribute to artists their 50 percent of Spotify stock or pay artists their true and accurate royalty payments, for years Universal shortchanged artists and deprived plaintiffs and class members of the full royalty payments they were owed under Universal’s contract.”

NEW YORK, NEW YORK-October 1: Hip-Hop Duo Black Sheep’s Mista Lawnge (William McLean) and Dres (Andres Vargas Titus) appear in a portrait taken on October 1, 1994 in Brooklyn, New York City. (Photo by Al Pereira/MIchael Ochs Archives).
Read More: Universal Music Group Pulls Catalog From TikTok Rival Triller

Following Rolling Stone‘s report, a UMG spokesperson denied Black Sheep’s claims.

“Universal Music Group’s innovative leadership has led to the renewed growth of the music ecosystem to the benefit of recording artists, songwriters and creators around the world,” they said.

“UMG has a well-established track record of fighting for artist compensation and the claim that it would take equity at the expense of artist compensation is patently false and absurd. Given that this is pending litigation, we cannot comment on all aspects of the complaint.”

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50 Cent Recalls Turning Down $1.3 Million Offer From UMG

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50 Cent says that he once turned down a $1.3 million offer from Universal Music Group due to the label’s affiliation with Murder Inc. executive Irv Gotti. Gotti had previously admitted to blocking labels from signing 50 during a 2020 interview with B. High of Hot 107.9.

“Irv [Gotti] was talking in the interview and he was talking about he was blocking me,” 50 Cent said during a recent interview. “Like he was blocking everything. He said, ‘I blocked him into a good situation.’ And it just went off. And, I saw the situations I didn’t feel where he felt he was blocking me at that point. But I wouldn’t do business with anyone who had direct associations or any influence to the things that they had that was working.”

LAS VEGAS, NV – SEPTEMBER 20: Recording artist Curtis ’50 Cent’ Jackson of the music group G-Unit performs onstage during the 2014 iHeartRadio Music Festival at the MGM Grand Garden Arena on September 20, 2014 in Las Vegas, Nevada. (Photo by Kevin Winter/Getty Images for iHeartMedia)

From there, 50 further recalled explaining to Tony Yayo that Gotti could “sabotage” everything they had built through that point.

He continued: “So they offered me a million three to do a G-Unit and my solo album at Universal and I just turned the deal down. [Tony] Yayo didn’t understand he was like, ‘What? A million three you not gone do it, what? That’s like saying we hit the lottery and you not going to pick up the ticket.’ And I’m like, ‘Nah it’s not the right deal,’ because it’s in the Universal system. Def Jam and those guys was already making money from that system. Where they could influence and sabotage everything that I had going.”

As for how Gotti is connected to UMG, Murder Inc. Records is a subsidiary of Def Jam, a division of Universal Music Group. Gotti and 50 have been going back and forth on social media for years at this point.

Check out 50 Cent’s story, as shared by HipHopDX below.

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