In a positive move for American music creators, SoundExchange welcomes a recent announcement by Sweden's Ministry of Justice of its intention to implement national treatment remuneration rules for the use of music beginning July 1, 2025.
A welcome move away from reciprocity to benefit U.S. creators
WASHINGTON, Feb. 26, 2025 /PRNewswire-PRWeb/ -- In a positive move for American music creators, SoundExchange welcomes a recent announcement by Sweden's Ministry of Justice of its intention to implement national treatment remuneration rules for the use of music beginning July 1, 2025. The country's move away from reciprocity is in line with a 2024 ruling by the Court of Justice of the European Union.
"Sweden's decision to adapt its copyright rules will ensure equal treatment for American music creators and is a huge win that will unlock millions of dollars in annual royalties rightfully owed to people that made the music," said Michael Huppe, President and CEO of SoundExchange. "Music is among America's most valuable exports, but continued discrimination overseas leaves our artists and recording labels unpaid for use of their work in many countries. As a global advocate for creators, SoundExchange applauds Sweden for its plan to implement national treatment and encourages other nations to follow suit."
Background
In 2020, in a dispute between the Irish performer and record company collective management organizations (CMOs), the Court of Justice of the European Union (CJEU) ruled that all European CMOs must pay remuneration to all non-EU performers and record companies, including Americans, on the basis as they pay their own nationals. In other words, American (and other foreign) creators are entitled to the same rights that European creators receive in any given country. National treatment is essentially a tenet of non-discrimination on the basis of one's nationality and a principle the United States has consistently supported and applied to its own royalty systems.
Following this decision (Recorded Artists Actors Performers Ltd v Phonographic Performance Ireland Ltd and Others, a/k/a "RAAP"), the CJEU conducted a comprehensive investigation into the impact of the decision and held discussions on copyright among Member States and stakeholders. In 2024, the CJEU once again had an opportunity to address national treatment in the "Kwantum" case, in the context of industrial design, and upheld the principle of national treatment as the prevailing EU rule.
Sweden's decision to implement its national treatment obligations in its local legislation is a significant positive step towards fair remuneration for creators, regardless of nationality. Other European countries, who have since the RAAP decision failed to implement it in local law, should look to Sweden, and other implementing countries, as positive examples. Implementation isn't just a legal requirement – it's the right thing to do.
About SoundExchange
SoundExchange is the premier music tech organization on a mission to power the future of music. It was independently formed in 2003 to build a fairer, simpler, and more efficient music industry through technology, data, and advocacy. The only organization designated by the U.S. government to administer the Section 114 sound recording license, SoundExchange collects and distributes digital performance royalties on behalf of 700,000 music creators and growing. Through proprietary music tech solutions that turn data into accurate revenue, SoundExchange has paid more than $12 billion in distributions to date. For more information, visit soundexchange.com.
Media Contact
John Vlautin, SoundExchange, 1 818-763-9800, [email protected], www.soundexchange.com
SOURCE SoundExchange
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