The key hits:

• To join TikTok’s Pulse program, creators must agree to grant TikTok the ability to sub-license their content without receiving royalties.
• The terms are likely a defensive move by TikTok to protect itself against potential legal claims.
• Some creators are opting against joining the revenue-sharing program because of TikTok’s terms.

TikTok has been inviting more creators to join its revenue-sharing program Pulse in recent months, but some creators who have received invites are questioning whether agreeing to the program’s terms is worth the money they may receive. Two of the creators Digiday spoke to said they have decided not to accept the invites because of TikTok’s terms.

To participate in TikTok’s revenue-sharing program, creators must agree to grant TikTok the “irrevocable” ability to sub-license creators’ content and any pre-existing materials contained in the videos — including “notes, records, drawings, designs, products, services… original works of authorship” — without paying royalties to creators, according to copies of the “TikTok Pulse Program – Creative Partner Terms” and “TikTok Creator Marketplace Terms of Service for the U.S.” that were reviewed by Digiday (screenshots below).

“I read that, and some alarms went off,” said one creator who was invited to join the Pulse program but has decided to refrain until the terms change.

So what’s the big deal with this legalese? Well, it basically means that — while participating creators retain ownership rights to their content — TikTok can take participating Pulse creators’ videos and strike licensing deals, such as selling them for use in TV shows or ads, and not have to pay a cut to creators.

“This is the broadest license you can get,” said John Neclerio, chair of law firm Duane Morris’s technology, transactions, licensing and commercial contracts group.

In an emailed statement, a TikTok spokesperson said, “In regards to TikTok Pulse, we have no plans or intentions to sublicense creators content. In our TikTok Creator Marketplace terms, which creators need to accept as Pulse payments are run through TTCM, there is language that mentions content will only be licensed on an as-needed-basis to parties other than Tiktok, such as advertisers, in connection with campaigns. If you review the terms, you will find these are limited licensing terms and not a license to use their content broadly. Creators still retain ownership of their defined TTCM ‘Content.’”

To be clear, the language seems to be primarily a defensive measure by TikTok to protect itself against potential legal claims. While the terms do give TikTok the option to sublicense creators’ content, the company’s aim is more likely to limit its legal …read more

Source:: Digiday

Author: Aaron