FOR IMMEDIATE RELEASE CIMA Stands with the Global Independent Music Community Opposing TikTok’s Boycott of Merlin Toronto, October 9, 2024 – CIMA stands with the global independent music community in opposing the decision by TikTok to walk away from the negotiating table with Merlin, the licensing agency for over 30,000 independent music companies around the world. Instead, TikTok has said that when its deal expires on October 31, it will negotiate with rights holders on an individual basis rather than deal collectively with Merlin. It remains unclear whether TikTok will engage meaningfully with independent Canadian rights holders or expect them to accept whatever terms TikTok has decided to propose. In a letter to its members Merlin wrote: “We believe the most likely reason that TikTok did this is that TikTok does not want to pay a fair rate for the music that powers their platform. If this is right, then TikTok does not value independent music, the independent labels and distributors who support that music, nor the diverse artists who create it." From AI companies using unlicensed content to train large language models to TikTok seeking to drive down even further what they pay artists; these actions underline a much more troubling trend. “By bypassing local regulations and imposing unfavourable terms on rights holders, platforms create a significant power imbalance,” says Gord Dimitrieff, CIMA’s Chair of Government Affairs. “It stifles competition, reduces cultural diversity, and limits consumer choice." Currently, this is starkly underlined in Canada as global platforms seek to avoid regulation through Bill C 11, The Online Streaming Act. While the details of C11 may be debated, its overall intention regarding music is to support the local music sector and create more balance in the market. “The TikTok decision should act as a wakeup call to Canadian policy makers and politicians engaged in regulating the tech sector,” says Andrew Cash, President and CEO of the Canadian Independent Music Association (CIMA). “Governments must resist the pressure from global platforms to weaken or dismantle regulation that supports fair markets and fair pay for artists.” CIMA will continue to work constructively and collaboratively with all stakeholders to build a more equitable music sector in Canada that strengthens cultural diversity, balanced markets and fair compensation for artists whose work is fundamental to the businesses of the global tech sector.

-- 30 --

CIMA Media Contact: For media inquiries, interviews, or additional information, please contact: Jenia Schukov Communications & Export Programming Officer p: 416-998-3705 e: jenia@cimamusic.ca   About CIMA: Founded in 1975 CIMA is the not-for-profit national trade association representing over 350 Canadian-owned music companies connected to over 6000 artists in every province and territory in Canada. CIMA's membership ranges from individual artists and solopreneurs to Canadian-owned global music companies. Its membership also includes music publishers, managers, agents, songwriters, as well as other industry associations, provincial MIA’s and industry adjacent service companies including in digital marketing, public relations and content creation.