A powerful coalition of music industry organizations has formally urged the United States Trade Representative to block a new European Union legislative proposal that threatens to strip nearly $300 million in annual royalties from American artists and rightsholders. This move directly jeopardizes the financial stability of performers, labels, and publishers who rely on consistent transatlantic income, while undermining the foundational “national treatment” principle that has governed global copyright for decades. If the EU shifts to a “material reciprocity” framework, it would legally codify discrimination against US creators, potentially leaving the United States as the only major democratic economy where artists receive no performance royalties for AM/FM radio airplay.
The $300 Million Royalty Threat
The coalition, which includes the Recording Academy, SAG-AFTRA, the American Federation of Musicians, and the Artist Rights Alliance, sent a letter to the USTR on Wednesday, July 8, detailing the catastrophic economic impact of the proposed policy reversal. The dispute centers on overturning the landmark 2020 Court of Justice of the European Union ruling in Recorded Artists Actors Performers Ltd (RAAP), which established that EU member states cannot deny performance royalties to non-EU performers based on reciprocity. Currently, 21 of the EU’s 27 member states provide national treatment, ensuring American creators are treated no less favorably than domestic rightsholders. Replacing this with a reciprocity system would condition protections on US law, creating a fragmented and uncertain environment that would likely lead to reduced or withheld payments for US artists.
Global Consequences and the American Music Fairness Act
Beyond the immediate financial loss, the coalition warns that this EU proposal could trigger a domino effect, encouraging other countries to adopt similar discriminatory measures and eroding transatlantic cooperation on intellectual property. While European trade groups like IMPALA argue that the current system transfers roughly €125 million annually to US rightsholders, the US coalition emphasizes that national treatment is a cornerstone of nondiscrimination in global copyright systems. In response to the US gap in artist compensation, the coalition highlighted the American Music Fairness Act as a legislative path forward. Authored by Representative Darrell Issa and Senator Marsha Blackburn, the bill mandates that AM/FM radio corporations pay artists for the music they play. With Gene Simmons testifying in support of the legislation in December 2025 and Japan passing similar copyright reforms in June 2026, the US risks becoming the sole OECD member without such a right, further isolating its artists in the global market.
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