A coalition of major US music industry organizations has urged the Office of the United States Trade Representative (USTR) to push back against a European Commission initiative that could eliminate nearly $300 million in annual performance royalties paid to American artists and rightsholders.
The European Union is considering a shift away from the national treatment principle affirmed by the 2020 Court of Justice of the European Union (CJEU) ruling in the RAAP case. That decision guaranteed US recording artists and labels the same royalty protections in EU markets as their European counterparts. The proposed change would instead apply a material reciprocity standard, effectively creating a carve-out that targets US creators.
Why the EU Is Threatening Reciprocal Action
The dispute stems from a long-standing exemption in US copyright law. Terrestrial AM/FM radio stations in the United States are not required to pay performance royalties to artists and rightsholders, a policy the European Commission views as a lack of reciprocal treatment for its own performers. EU officials have signaled that they may respond by denying American creators the royalties they currently receive when their music is played on European radio.
If the European Commission moves forward, the financial impact on US rightsholders would be immediate. The coalition estimates that the loss of national treatment protections would redirect roughly $300 million in annual payments away from American artists and labels.
Coalition Points to Legislative Fix
In a letter to the USTR, the coalition identified the American Music Fairness Act as the definitive solution. The bipartisan bill, introduced by Representative Darrell Issa (R-CA) and Senator Marsha Blackburn (R-TN), would require US terrestrial radio stations to pay performance royalties to artists and rightsholders. Passing the legislation would close the domestic loophole, satisfy European reciprocity demands, and safeguard the flow of royalties from abroad.
The signatories to the letter represent a broad cross-section of the US music community:
- American Association of Independent Music (A2IM)
- American Federation of Musicians (AFM)
- American Society of Composers, Authors and Publishers (ASCAP)
- Broadcast Music, Inc. (BMI)
- Global Music Rights (GMR)
- Music Artists Coalition (MAC)
- National Music Publishers’ Association (NMPA)
- Recording Academy
- Recording Industry Association of America (RIAA)
- SAG-AFTRA
- SoundExchange
- Songwriters of North America (SONA)
The coalition emphasized that American music accounts for more than a third of the songs played on European radio. Without a change in US law, the letter warns, the European Commission’s proposal would sever a critical revenue stream for US creators and rightsholders.
Passing the American Music Fairness Act, the groups argue, would not only resolve the domestic performance royalty exemption but also serve as a $300 million shield for American intellectual property in international markets.
