While struggling to maintain stability in its financial operations, Triller now confronts a significant legal challenge as Merlin, a prominent digital rights organization, pursues a $2.55 million lawsuit for unpaid royalties dating back to their 2020 licensing agreement. The lawsuit, which has escalated to a potential $3.2 million default judgment including accrued interest and legal fees, centers on Triller’s alleged violation of a “most favoured nation” clause requiring the platform to match licensing fees offered to other record companies.
Merlin’s legal filing asserts that Triller failed to notify them in writing about a more favorable deal with Sony Music, a breach that only came to light after Sony sued Triller for its own unpaid royalties in 2022. Despite repeated invoicing and formal requests for payment, Triller has neither paid the outstanding amount nor disputed the debt, prompting Merlin to seek court enforcement. Both parties had actually reached an agreement on owed amount during discussions in October and November prior to the lawsuit.
Triller’s contractual violations surfaced only through Sony’s lawsuit, leaving unpaid royalties despite Merlin’s persistent collection efforts.
The case highlights broader financial difficulties plaguing the social video platform, which has faced a barrage of similar lawsuits from major music rights entities. Universal Music Group initiated legal proceedings in 2023 for missed licensing payments, while a hedge fund owned by Yorkville Advisors has sued for $33.5 million related to Triller’s merger partner AGBA.
Complications from Triller’s corporate alterations appear to have exacerbated the situation, with the company failing to fulfill contractual obligations to confirm payment responsibilities in writing following structural changes. Merlin further alleges Triller did not deliver promised warrants following corporate restructuring in November. This dispute exemplifies why proper royalty collection systems are essential for music creators and rights holders, as outlined by various performance rights organizations.
As the legal proceedings advance toward a possible default judgment, industry observers note this case represents just one facet of Triller’s ongoing financial instability. The lawsuit was officially filed on March 27, 2025 in the US District Court for the Southern District of New York. The company previously settled a $28 million lawsuit with Verzuz creators in 2022, suggesting a pattern of payment difficulties. Independent artists utilizing streaming platforms for distribution should view this case as a cautionary tale about the importance of partnering with reliable services that maintain transparent royalty structures.
Merlin has requested the court order Triller to pay the full amount plus interest and honor existing warrants, a move that could potentially influence Triller’s approach to other outstanding financial obligations as it attempts to navigate its precarious position in the competitive social media landscape.
