A coalition of music industry organizations sent a letter to the United States Trade Representative (USTR) on July 8, 2026, urging the administration to oppose a potential European Union (EU) royalty proposal. The groups say the change could jeopardize nearly $300 million in annual payments to American artists and rights holders.
Proposed changes to royalty protections
The proposal under consideration by the European Commission could reverse protections established by the Court of Justice of the European Union (CJEU) in its 2020 decision involving Recorded Artists Actors Performers Ltd. (RAAP). That ruling extended national treatment protections to American recording artists and labels.
National treatment gives foreign creators protections no less favorable than those afforded to domestic rights holders. The coalition argues that replacing it with a material reciprocity framework would make those protections dependent on U.S. law and discriminate against American creators.
The letter says 21 of the EU’s 27 member states currently provide national treatment and pay royalties to American artists and rights holders. The groups warn that reciprocity would likely reduce or halt payments, add administrative costs and make eligibility subject to political decisions.
The coalition also argues that the change could encourage similar restrictions in other countries, weaken international copyright protections and damage transatlantic cooperation on intellectual property. It says the proposal would undermine established nondiscrimination principles.
Coalition points to U.S. radio legislation
The letter identifies the American Music Fairness Act (H.R. 861/S. 326) as a way to strengthen artist compensation while preserving international trade and copyright principles.
The bipartisan bill was authored by Representative Darrell Issa (R-CA) and Senator Marsha Blackburn (R-TN). It would require AM/FM radio companies to pay artists for playing their recordings, as Spotify, Apple Music, SiriusXM, Pandora and other American platforms already do.
The coalition argues that enactment would address the reason for Europe’s proposed policy change, protect American artists’ European royalty payments and provide compensation for U.S. radio use.
Organizations signing the letter
The letter’s signatories include:
- American Association of Independent Music
- American Federation of Musicians
- Artist Rights Alliance
- American Society of Composers, Authors and Publishers (ASCAP)
- Broadcast Music, Inc. (BMI)
- Christian Music Trade Association
- Future of Music Coalition
- Music Managers Forum-US
- National Independent Talent Organization
- Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA)
- Society of Composers & Lyricists
- SoundExchange
- The Recording Academy
SoundExchange’s royalty administration
SoundExchange says it has collected and distributed more than $13 billion in digital performance royalties on behalf of more than 800,000 music creators.
It is the sole organization designated by the U.S. government to administer the Section 114 sound recording license. It collects and distributes digital performance royalties from services including Pandora, SiriusXM and iHeartRadio, along with thousands of other platforms, and collects available international performance royalties through its global partner network.
