Triller Faces $3.2M Default Judgment as NASDAQ Pressure Mounts and Merlin Intensifies Legal Assault

triller s legal and financial troubles

Social media platform Triller stands on the precipice of a costly legal defeat as it faces a potential $3.2 million default judgment in a lawsuit filed by Merlin, a major independent music licensing collective.

The legal action, characterized as a “missing-compensation” lawsuit, alleges that Triller failed to pay required licensing fees for music represented by Merlin, which administers rights for a substantial portion of the global independent music catalog.

The default judgment, which could be issued imminently as of September 29, 2025, stems from Triller’s apparent failure to mount a defense in the ongoing litigation. Legal experts note that such judgments typically result when defendants fail to respond to court proceedings or participate in their defense, leaving courts little choice but to rule in favor of plaintiffs.

Merlin’s lawsuit represents a significant challenge for Triller, potentially affecting relationships with other music industry partners. The licensing collective serves as an administrator for numerous independent labels and artists, making this case particularly consequential for the platform’s music integration features.

Merlin’s battle with Triller threatens to unravel key music partnerships essential to the platform’s content ecosystem.

The $3.2 million figure presumably reflects accumulated unpaid royalties, though specific details regarding affected tracks or time periods remain undisclosed in public reports. Judge Jeannette Vargas has given Triller until October 22nd to respond to the default judgment motion before the scheduled November hearing.

Industry observers are closely monitoring the case, which highlights persistent tensions between digital platforms and music rights holders over fair compensation.

While no public statements have emerged from major music industry organizations regarding this specific dispute, the outcome could establish precedent for similar claims against social media platforms that integrate music into user-generated content.

Triller has not issued any public comment addressing the lawsuit or potential judgment, leaving questions about its strategy to resolve the matter.

The financial exposure comes at a challenging time for the company, which reportedly faces separate pressures from NASDAQ.

Should the court grant the default judgment, Triller would face immediate financial obligations to Merlin, along with potential reputational damage that could complicate future licensing negotiations with music industry partners.

This legal battle underscores the growing importance for platforms to properly manage artist profiles and licensing agreements when incorporating music into their services.

As with other collecting societies worldwide, Merlin’s primary function includes ensuring creators receive appropriate compensation when their works are used commercially on platforms like Triller.

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