European Union Court Rules in Favor of Equal Treatment for Creators

October 1, 2020

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The European Court of Justice (ECJ) has issued a ruling ordering European Union countries to treat music creators equally regardless of their nationality, recognizing this as an important milestone in the fight to ensure music fairness.

The ECJ ruling stemmed from a case in Ireland regarding whether US music creators should be paid royalties when their music is played on Irish radio or in places such as restaurants or bars. Some countries deny foreign music creators royalties for the use of their work even though royalties are otherwise paid to artists who are nationals of those countries.

According to a public statement by SoundExchange, the non-profit collective rights management organization that collects and distributes digital performance royalties for sound recordings, the ruling has broad implications for music creators around the world. By adopting the principle of “national treatment”—that a country should provide foreign entities the same benefits and protections as it would its own citizens—the ECJ is setting the stage for all artists to be paid royalties when their music is played on EU radio broadcasts and public performances.

“Today’s decision by the European Court of Justice reflects a growing global recognition that countries should treat all music creators the same, regardless of their nationality. The ECJ reaffirmed equal treatment as a fundamental principle of how nations engage with one another,” said SoundExchange President and CEO Michael Huppe.“We urge EU member states to quickly follow suit so that all musicians and labels, from whatever territory, can be properly respected for the benefits they provide beyond their home country.”

The ruling comes as the United States and United Kingdom undertake negotiations on a post-Brexit trade agreement. A broad spectrum of organizations representing artists, publishers, musicians, and managers have urged negotiators to insist that national treatment be included in the final US-UK trade agreement.

Unfair treatment denies US music creators an estimated $330 million in direct global royalty payments a year.

For more information on the Fair Trade of Music campaign, visit the website at www.fairtradeofmusic.com.

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