Photo Credit: Jakob Owens
A coalition of US music organizations urges the US Trade Representative to oppose an EU proposal that will cost American artists over $300 million.
Radio stations in the United States not having to pay royalties to the owners of recordings for their broadcasts has led to numerous complications across the industry, extending beyond the U.S. Now, a coalition of American music organizations is urging the U.S. Trade Representative to oppose an EU proposal with millions on the line.
In Europe, royalties are paid for both publishing and recording for public performance—but many organizations have historically withheld recording payments to American artists and labels. They argue that the artists already aren’t getting anything from the U.S. companies, so why should European companies pay?
That practice was reversed by the RAAP ruling in 2020—a case originating in Ireland as a dispute between RAAP, a collective management organization for performers, and PMI, an organization representing record labels.
Under Irish copyright law, foreign performers from third countries (such as the United States) were excluded from receiving “equitable remuneration” when their music was played on Irish radio or in public venues, unless there was a reciprocal agreement showing that the country paid Irish artists for public performances. Since the United States does not pay traditional broadcast performance royalties to radio performers, Ireland withheld those royalties from American artists.
RAAP challenged this, arguing that under EU law, a single equitable remuneration must be paid out to all performers, regardless of nationality. That decision eliminated the reciprocity issue, opening new avenues for American artists from EU countries. But now it’s at risk of being reversed.
In response, a U.S. music coalition has released a letter to the United States Trade Representative to oppose a proposal under consideration by the European Commission that would jeopardize nearly $300 million in annual royalties paid to American artists and rightsholders. That letter can be read in full here.
“National treatment has long been a cornerstone of the global copyright system, ensuring American creators—including recording artists, musicians, and performers—are treated no less favorably than domestic rightsholders abroad,” the letter reads. “The Commission’s proposed shift to reciprocity would condition these protections on U.S. law, replacing a clear, rules-based system with one that is fragmented, uncertain, and would directly disadvantage U.S. creators in foreign markets.”
Of note, 21 of the European Union’s 27 member states currently provide national treatment and pay royalties to U.S. artists and rightsholders.
Signatories include SoundExchange, The Recording Academy, ASCAP, BMI, SAG-AFTRA, the American Federation of Musicians, the American Association of Independent Music, the Artist Rights Alliance, the Christian Music Trade Association, the Future of Music Coalition, Music Managers Forum-US, the National Independent Talent Organization, and the Society of Composers & Lyricists.
