EU Labels, Artists want to stop Radio Royalties from going to US acts
European artists and labels are battling a court ruling that pays US performers when their music is played on the radio there. The judgment reverses longstanding reciprocity since US radio pays no performer royalties and could cause a 40% drop in payments to EU performers and producers.
from Celebrity Access
A coalition of European artists and label groups have joined forces to urge legislators in the European Union to craft a legislative solution to the economic fallout stemming from the European Court of Justice’s 2020 ruling in the Recorded Artists Actors Performers (RAAP) case.
The ruling suspends the longstanding practice of material reciprocity in the payment of broadcast and public performance royalties on sound recordings from non-EU countries that don’t provide performers with an equal share of royalties generated when their music is played on radio or in public venues, including from markets such as the U.S.
Unless the principle of material reciprocity is restored in EU legislation, European performers and producers in “reciprocity” countries could see revenues fall by up to 40%, the share of US repertoire in some of these countries.
Since the ruling in 2020, the European Commission has acknowledged the issue on several occasions and said it is committed to finding a solution, but as of yet, has failed to do so.
“It is the EU’s responsibility to prevent European artists and producers losing millions every year to the USA, which has chosen not to protect these rights. A proposal is needed now to restore legal certainty, safeguard cultural diversity and European sovereignty. This needs to be done in a way that provides for member states to apply reciprocity whilst also allowing a grandparenting clause for countries who have a different system. Imposing a mandatory system is a disproportionate response. We call on the EU to act and also exert increased trade pressure on the USA to raise their level of protection. Their stance is costing the world music economy hundreds of millions a year,” said Helen Smith, Executive Chair of IMPALA, a trade association for the European indie label sector.
“In the Netherlands, the first country to stop applying reciprocity to comply with the RAAP ruling, we are seeing a clear and substantial drop in the revenue going to Dutch and other European performers and producers. This is what awaits other countries if nothing is done to address this. We need a solution now before the impact on artists, producers and cultural diversity becomes even bigger,” added Will Maas, Chairman of the Dutch musicians union Ntb/Kunstenbond.
Signatories supporting the call for legislative action include:
• Adami – French collective management organization for performers’ rights – Xavier Lardoux, CEO
• IMPALA – European association of independent music companies – Helen Smith, Executive Chair
• Musikerförbundet – Swedish Musicians’ Union – Karin Inde, Chairman
• Ntb/Kunstenbond – Dutch Musicians’ Union – Will Maas, Chairman Ntb
• PlayRight – Belgian collective management society of neighboring rights for performing artists – Christophe Van Vaerenbergh, Managing Director
• SAMI – Swedish Artists’ and Musicians’ Interest Organization – Stefan Lagrell, Managing Director
• SYMF – Swedish Union of Professional Musicians – Gunnar Jönsson, Chairman
• unisono – German Federation of Musicians – Gerald Mertens, CEO
