TikTok faces challenges in license negotiations

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Arbeitsrecht-Anwalt-Rechtsanwalt-Kanzlei-MTR Legal Rechtsanwälte

Initial Situation: Disputes over Music Licensing on TikTok

In the context of the legal dispute between TikTok and the rights management organization, represented by GEMA, the Munich Regional Court I rendered a significant decision on February 15, 2024 (Case No. 42 O 10792/22) regarding the use of music on social media platforms. The core of the dispute was the question of under what conditions TikTok was allowed to make copyrighted music works accessible on its platform.

Facts of the Case

The dispute arose from the fact that TikTok had not acquired extended licenses for certain music works from the concerned rights management organization. Nevertheless, these works were made available on the platform for users, allowing copyrighted content to be used without the consent of the rights holders. This approach led to a legal confrontation over the permissibility of use as well as injunctions and damages.

Decision of the Munich Regional Court I

The Munich Regional Court I found that TikTok had made the music works in question publicly accessible without securing sufficient usage rights. The rights management organization was granted injunctive relief as the necessary licenses were not in place, resulting in an unlawful use of copyrighted works.

Court’s Justification

The court reasoned that already by allowing users to upload music works on TikTok and make them accessible to an unlimited user circle, a public performance within the meaning of § 19a UrhG occurred. Control over the platform and its content was attributed to TikTok, thus excluding a purely technical intermediary role. The court pointed out that TikTok, as the platform operator, is liable for providing the fiscally relevant works unless a corresponding license was granted.

Assessment of Copyright Responsibility

In line with previous national and European jurisprudence, TikTok’s conduct was not deemed as that of a neutral platform operator. Rather, the court acknowledged that the platform’s functionality, which specifically enables users to incorporate music tracks, surpassed the threshold for public performance. A claim for exemption based on alleged liability privilege was rejected by the court. According to the chamber, the relevant copyright provisions foresee extensive responsibility for the platform operator when a music-related use is enabled or promoted.

Procedural Status and Outlook

The judgment of the Munich Regional Court I is not final. TikTok retains the right to appeal to the next higher court. Consequently, the factual and legal implications of the judgment could be reviewed and reassessed in an appellate instance. The presumption of innocence applies until the conclusion of all pending legal remedies processes. Full grounds of the decision can be found at urteile.news.

Significance for Rights Holders and Platform Operators

The decision has a practical signal effect for both authors and rights management organizations as well as for providers of digital services that enable their users to access copyrighted content. The dispute emphasizes the extent to which licenses for content on user-generated platforms are indispensable and the liability risks that can arise without sufficient rights clearance. Consequently, continued high sensitivity in the area of music licensing on digital platforms is expected.

In conclusion, it must be noted that questions concerning the scope of usage rights or liability in copyright-relevant matters acquire significant practical and economic importance. For in-depth concerns, it is recommended to seek professional legal advice in copyright law to explore individual implications and identify tailored safeguarding strategies.