Polaris Hub, which is a joint venture between the Nordic collective rights management societies Koda (DK), TONO (NO) and Teosto (FIN), entered into a license agreement with TikTok in 2022. The license agreement also covers the repertoire of the Icelandic rights organisation STEF.
What does the agreement mean for me as a Koda member?
It means that you can be sure of receiving payment when your music is played on TikTok.
What will I be paid? And on what basis?
Koda carries out distributions to members based on information about music consumption from TikTok. The following preconditions apply to the distribution:
TikTok’s reporting to Koda is currently based on the number of ‘Creations’, which indicates how many times a given song has been placed in different videos. It is this parameter rather than, for example, the number of streams per video which forms the basis for Koda’s distributions to rightsholders for the musical works used.
The distribution is based on reporting from the territories Denmark, Norway, Finland, Sweden, UK and Germany. These territories have been deemed representative in terms of the use of Polaris’s repertoire on the service in general; however, this does mean that specific music use in other countries directly affects the distribution.
The distribution for a specific consumption period will be carried out over the course of two Koda distributions, where the first distribution is based on a temporary assessment and the second is a final distribution for the period. Thus, your total TikTok revenues for a given period can only be calculated after the second distribution has been made.
Does the agreement also cover past consumption on TikTok?
Yes, the agreement covers past use dating back from the platform’s initial publication to the present day. However, Koda has not received music reporting for the entire period. Amounts pertaining to periods where no reporting has been received will be included in the distributions for periods where reporting has been received.
How much does TikTok pay for music rights represented by Koda/TONO/ Teosto /STEF?
Unfortunately, we cannot answer this as the agreement includes a confidentiality clause which all international digital services require in order to enter into an agreement at all.
Which territories does the agreement cover?
The agreement covers all music rights represented by Koda in the EMEA region: Europe, the Middle East and Africa.
How does the agreement affect TikTok users?
The agreement does not entail any changes to the way consumers use TikTok.
