As TikTok's direct deal deadline arrives for independent labels, IMPALA has issued an urgent call for cooperation rather than "strong-arm tactics" in licensing negotiations.

The key issues center around TikTok's decision not to renew its Merlin agreement, which expires October 31st. While TikTok cites fraud-detection concerns, indie labels argue the platform is attempting to reduce music licensing payments through take-it-or-leave-it contracts with less favorable terms.

IMPALA's executive chair Helen Smith warns this approach poses "significant risks" to both the independent music sector and TikTok's future success. The organization emphasizes that independent labels have been valuable partners in driving creative engagement on the platform.

IMPALA proposes several key solutions:

• Extend the existing Merlin agreement by two months
• Enter good-faith negotiations with Merlin
• Address fraud concerns through discussion
• Avoid implementing content or algorithmic measures that could impact Merlin members' visibility or compensation

While some larger indies like UnitedMasters have secured direct deals, many smaller labels face uncertainty. Despite the deadline's arrival, TikTok hasn't yet begun removing affected catalogs from its platform.

IMPALA remains optimistic about reaching an equitable solution, noting that TikTok continues to be "a well-loved platform, embraced by countless artists and loved by their fans across the globe."

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