EU Lobbying Update: Neighboring Rights and the RAAP Ruling

EU Lobbying Update: Neighboring Rights and the RAAP Ruling 

In the music industry, a significant development is unfolding in the EU. Following a 2020 EU Court of Justice ruling, there's a growing debate over neighboring rights (NR) payments to non-EU rightsholders, particularly US artists and labels.

The Ruling: The court decided that EU member states can't individually exclude non-EU rightsholders from NR payments. This implies that American artists should receive their share of NR royalties.

Current Situation: Only a few countries have followed this ruling. Most European Collective Management Organizations (CMOs) are adhering to the principle of reciprocity – paying foreign artists only if their countries reciprocate. Consequently, many US artists are not receiving payments in these countries.

Lobbying for Change: Various European CMOs and music industry bodies are lobbying for an EU-wide legislative change regarding NR (read more: https://www.impalamusic.org/european-performance-income-us-repertoire/). The goal is to align payments with the principle of reciprocity.

Differing Views: Not all agree, however. GVL in Germany, for example, notes that US artists are already being paid in several other countries, including Spain, Portugal, Italy, and the Czech Republic. A Europe-wide reciprocity policy could negatively affect royalty collections and increase administrative costs in these countries.

Divided Opinions: Europe remains divided on this issue, and a resolution may take time. Meanwhile, US artists and labels are in a state of uncertainty in most European countries.

Stay tuned for more updates on this evolving situation.