Music Industry Organizations Urge USTR to Oppose EU Proposal That Threatens Nearly $300 Million in Annual Royalties for American Artists

SoundExchange and other music organizations warn proposed European policy reversal would discriminate against U.S. creators and undermine longstanding international copyright principles

WASHINGTON, July 8, 2026 /PRNewswire/ -- A broad coalition of leading music industry organizations today sent a letter to the United States Trade Representative urging the Administration to oppose a proposal under consideration by the European Commission that could jeopardize nearly $300 million in annual royalties paid to American artists and rights holders.

The letter expresses concern over a potential European Union legislative proposal that would overturn the 2020 Court of Justice of the European Union (CJEU) decision in RAAP (Recorded Artists Actors Performers Ltd.), which extended national treatment protections to American recording artists and labels. According to the coalition, replacing those protections with a "material reciprocity" framework would codify discrimination against U.S. creators and significantly reduce royalty payments American artists currently receive from Europe.

"National treatment has long been a cornerstone of the global copyright system, ensuring American creators—including recording artists, musicians, and performers—are treated no less favorably than domestic rightsholders abroad," the coalition wrote. "The Commission's proposed shift to reciprocity would condition these protections on U.S. law, replacing a clear, rules-based system with one that is fragmented, uncertain and would directly disadvantage U.S. creators in foreign markets."

The organizations noted that 21 of the European Union's 27 member states currently provide national treatment and pay royalties to American artists and rights holders. They warned that a reciprocity-based system would likely lead to reduced or withheld payments, increased administrative burdens, and politically driven eligibility determinations, creating significant uncertainty for U.S. creators.

The coalition also cautioned that the EU proposal could have consequences far beyond Europe, weakening international copyright protections and encouraging other countries to adopt similar discriminatory measures. The letter argues that such a move would undermine transatlantic cooperation on intellectual property issues and erode long-established principles of nondiscrimination in global copyright systems. 

In the letter, the coalition pointed to the American Music Fairness Act (H.R. 861/S. 326) as a constructive path for strengthening artist compensation while maintaining adherence to international trade and copyright principles. The American Music Fairness Act, bipartisan legislation authored by Representative Darrell Issa (R-CA) and Senator Marsha Blackburn (R-TN), requires AM/FM radio corporations to pay artists for the music they play, exactly as Spotify, Apple Music, SiriusXM, Pandora, and every other American platform already does. If enacted, the bill will resolve the reason for Europe's recent policy shift, protect the royalty payments American artists depend on, and ensure that U.S. performers are finally compensated at home as well.

Signatories to the letter include the American Association of Independent Music, American Federation of Musicians, Artist Rights Alliance, ASCAP, BMI, Christian Music Trade Association, Future of Music Coalition, Music Managers Forum-US, National Independent Talent Organization, SAG-AFTRA, Society of Composers & Lyricists, SoundExchange and The Recording Academy.

About SoundExchange
SoundExchange is the largest global neighboring rights organization in the world, redefining how creators in the music industry get paid. By turning data into fast, accurate revenue for artists and rights owners, we have collected and distributed more than $13 billion in digital performance royalties to date on behalf of more than 800,000 music creators. As the sole organization designated by the U.S. government to administer the Section 114 sound recording license, SoundExchange seamlessly collects and distributes digital performance royalties from platforms like Pandora, SiriusXM, iHeartRadio, and thousands more, as well as all available international performance royalties through a strong global partnership network. For more information, visit soundexchange.com.

SOURCE SoundExchange