Indie Music Group Sues Triller for $2.55 Million Over Unpaid Fees

In a significant development in the music industry, Merlin, a digital licensing organization representing independent music labels, filed a lawsuit against Triller, a TikTok rival, on March 27, 2025, in the US District Court for the Southern District of New York. The suit alleges Triller breached a 2020 licensing agreement, owing Merlin $2.55 million in unpaid fees and violating a "most favored nation" clause, which ensures equal payment terms among music companies. The breach came to light through Sony Music’s 2022 lawsuit against Triller, settled for $4.57 million, revealing better terms offered to Sony.

Merlin’s complaint also claims Triller failed to honor a stock warrant promised after its merger with AGBA, a Hong Kong financial firm, which began trading on NASDAQ in October 2024. The indie group seeks the unpaid fees plus interest and either enforcement of the warrant or damages. Triller’s financial woes compound the issue: a 2024 SEC filing shows it owes over $23 million in licensing fees, alongside lawsuits from Universal Music Group in 2023 and Yorkville Advisors for a $33.5 million debt. Despite raising $50 million in equity funding in January 2025, Triller’s stock has plummeted to $0.64 per share by March 31, down from $2.20 at launch.

This lawsuit underscores ongoing tensions between music rightsholders and short-form video platforms over fair compensation. Triller’s history of legal battles, including removing major label music in 2022 amid payment disputes, highlights its struggles to balance growth and financial obligations. For Merlin, representing indie artists, the case is a stand for equitable treatment in an industry increasingly dominated by digital platforms. The outcome could influence future licensing agreements, spotlighting the intersection of music rights and corporate finance in the evolving digital landscape.