As the Local Radio Freedom Act gains heavy traction in Congress and the American Music Fairness Act sputters out, the European music industry is trying to prevent a 2020 ruling by the European Court of Justice from altering the distribution of royalties via reciprocity.
Since EU artists don’t receive royalties from broadcast radio in the US, many countries including the United Kingdom, France, Belgium, Denmark, and Ireland have denied American artists royalties from that continent’s radio play under “material reciprocity.” Now a legal challenge by Irish collection society Recorded Artists Actors Performers against Phonographic Performance Ireland, is expected to redirect approximately 125 million euros ($137 million) annually from European to US musicians.
The Netherlands has already aligned its legislation with the ECJ ruling, leading to a substantial increase in public performance royalties collected from US artists. However, this has sparked concerns among European musicians and labels, as voiced by IMPALA executive chair Helen Smith and others, who fear significant financial losses for European artists. Despite this, some industry executives support the ECJ’s national treatment approach, believing it could lead to broader rights and royalty collections across Europe.
