
On 25 July 2025, TikTok put its new Music Terms of Service and updated Commercial Music Library Terms into effect.
These updates are significant because they reshape how music is licensed and consumed on TikTok.
They also push the wider industry to rethink what a transparent and sustainable licensing structure should look like.
Under the new framework, TikTok defines three clear categories of music use: creator use for organic personal videos, brand and commercial use for advertising and campaigns, and live-streaming for real-time performance.
This structured approach sets an industry precedent. It pushes the industry toward clearer categorization of music use cases and offers a model for how other platforms can structure music rights in a scalable way.
It is important to note that this segmentation is not entirely new.
TikTok began shaping its licensing framework as early as 2019 with blanket deals with major labels and publishers, followed by the launch of the Commercial Music Library in 2020 to support business use.
The new terms represent the next stage in that evolution, transforming experimental licensing frameworks into enforceable global rules.
TikTok has redrawn the rules for music use in live-streaming.
Under its updated terms, the platform requires creators to use only music that has been specifically licensed for live broadcasts.
This change introduces a sharper boundary: creators can no longer rely on the general pool of TikTok-licensed music when they go live.
Instead, they must select from a curated set of tracks cleared for performance or obtain explicit permission.
TikTok structured this policy to reduce legal risk and clarify rights ownership.
Live-streaming counts as a public performance, which traditionally requires a separate license from publishers, labels, and performance rights organizations (PROs).
By carving out a distinct category for live-streaming, TikTok brings its licensing closer to how traditional broadcasters and streaming platforms operate.
This aligns with the wider industry practice of negotiating performance rights separately from sync or reproduction rights.
The new licensing framework represents a shift from TikTok’s earlier one-size-fits-all approach.
For rights holders, the update formalizes a pathway to monetize live-streaming, an area that has often been overlooked in short-form video licensing deals.
In effect, TikTok is treating live-streaming as a separate revenue channel that requires bespoke licensing, just like its advertising and creator markets.
Framework: Hybrid blanket & modular which includes upfront lump sums to majors, plus modular renewals (2025–2026 cycle is publisher-heavy):
Framework: Broad blanket. This includes global licensing covering Reels, Stories, Messenger, Horizon, and WhatsApp, with monetization add-ons since 2024.
Framework: Modular licensing which includes Content ID as the backbone, plus track-by-track licensing via Creator Music.
Framework: Revenue-share modular that includes opt-in licensing program, not broad blanket.
Framework: Broad blanket & modular add-ons (global deals with majors, plus immersive AR features and regional expansions).
The precedent is clear: short-form apps can license music, but models vary widely.
Success for new entrants will depend on three things: early clarity, robust metadata, and modular licensing frameworks that address UGC, commercial, and live usage distinctly.
At SpringSound, we understand these nuances and design licensing solutions for both app builders and rights holders.
A complete licensing alliance between platforms and the music industry must go beyond piecemeal deals.
It needs to cover every use case, from user-generated clips to commercial advertising to live streaming.
A robust structure generally includes:
(i) Label agreements (masters): Grants permission to use sound recordings in defined ways, including short UGC clips, background tracks for live streams, or full-length syncs in commercial content.
TikTok’s global licensing deals with Universal Music Group, first signed in 2021 and renewed in 2025, illustrate how platforms secure broad catalog access while negotiating revenue splits.
(ii) Publisher agreements (compositions): Allows platforms to reproduce and publicly perform underlying compositions.
Sync licenses are required when pairing music with visuals. YouTube’s agreements with Warner Chappell and Sony Music Publishing demonstrate this two-layer approach, ensuring platforms cover both recordings and compositions.
(iii) PRO/CMO coordination: Local collection societies, such as COSON/MCSN in Nigeria, SAMRO in South Africa, ASCAP/BMI/SESAC in the US, or PRS in the UK, must be included.
These groups handle public performance rights and distribute royalties.
Spotify’s early struggles in India (2019) with local PROs showed how ignoring this layer can stall launches.
(iv) Data & royalty plumbing (DDEX/ISRC/ISWC etc.): Proper reporting and payout require machine-readable standards like DDEX, and identifiers like ISRC (recordings) and ISWC (compositions).
Without this, disputes and underpayments multiply.
YouTube’s Content ID system, which tracks over 800M reference files, relies on these identifiers to allocate revenue.
(v) Content ID/fingerprinting: Platforms need technology to detect rights, trigger monetization, and enforce takedowns. Twitch’s 2020 DMCA-related challenges show the operational risks when fingerprinting infrastructure lags behind content use.
(vi) Commercial library & brand terms: A separate track must exist for advertisers and brand campaigns.
TikTok’s Commercial Music Library (CML) is a strong model, giving brands access to pre-cleared tracks for marketing while protecting rights holders from unlicensed commercial exploitation.
Key Risks & Realities
Key Example: UMG vs TikTok Licensing Stand-Off (Early 2024). In early 2024, Universal Music Group (UMG) pulled its entire catalog from TikTok. The move came after renewal negotiations failed over concerns about royalty payments, AI-generated music safeguards, and artist safety.
Define what music use cases you will support at launch:
Each scope triggers a different licensing obligation thus clarity upfront avoids costly renegotiations later.
Decide your payout structures:
Build financial models for each, so negotiations with labels/publishers are grounded in real economics.
Include audit rights, rollover clauses, AI restrictions, and indemnity caps so contracts scale with your product.
SpringSound can act as your licensing architect and operations partner. We handle negotiations with labels and publishers, manage relationships with local societies, and ensure compliance at every stage of your product’s journey.
Our role is to de-risk music licensing so your team can focus on growth, monetisation, user experience and not disputes. With the right rights in place from the start, we help platforms launch smoothly, scale without disruption, and build lasting trust with creators and rights holders alike