Tech companies are voracious users of copyrighted material, whether vacuuming it up for training generative AI or via user-generated content uploaded to their platforms. But how should copyright holders be compensated when a globe-spanning behemoth uses of their content?
In the past week, TikTok found itself front-and-centre in the global copyright debate. Universal Music Group (UMG) has removed its entire music catalogue from the platform after the two companies failed to reach a new licensing agreement. This means all videos on TikTok featuring Drake, Taylor Swift, and Bad Bunny now play with audio muted.
TikTok’s success is fuelled by music – dance crazes and musical memes are its lifeblood. But UMG says TikTok is stingy compared to other social media platforms. Music Business Worldwide estimates that TikTok is paying UMG $110 million a year, compared to $200-300 million from Meta. TikTok argues its platform provides huge exposure to artists and says UMG is “putting their own greed above the interests of their artists and songwriters”.
In Germany, a different copyright case involving TikTok has implications for its use of copyrighted material. Munich’s Regional Court has ruled that TikTok is liable for the unlicensed use of content from a Berlin-based film rights distributor.
TikTok, like most platforms, largely relies on the US law Digital Millennium Copyright Act (DMCA) to manage copyright infringement from its users. Under the DMCA, platforms avoid damages for infringing material if they take it down once it is brought to their attention. TikTok also proactively searches new content for copyrighted material.
While many international jurisdictions have similar schemes, the Munich court’s decision suggests takedown may no longer be sufficient in Germany. The judgement was based on the country’s 2021 UrhDaG copyright act, which says a “service provider” that displays copyrighted materials to the public is protected from claims only if it has undertaken “best efforts to acquire the contractual rights of use … of copyright-protected work”.
I’ve worked directly on DMCA and copyright issues in the tech industry. When dealing with content at scale and across jurisdictions, it is among the most complex of legal issues; copyright breaches are difficult to detect, and without DMCA protections, damages can be high.
Expect copyright to continue to be front-and-centre as we move further into the world of generative AI.
Shaun Davies, UTS FASS Master student