The European Union (EU) has disclosed its intention to engage in consultations with stakeholders within the recorded music sector regarding the optimal implementation of the single equitable remuneration right for non-EU/EEA music performers and record producers, whenever their recordings are broadcast within the EU. This consultation process will conclude on November 12, 2023

This process signifies a historic shift toward changing the previously applied rules of reciprocity that Collective Management Organizations (CMOs) have adhered to in the EU and beyond, including Serbia. These rules had been the basis for recognizing the right to compensation for authors and related rights holders solely on the grounds of reciprocity.

Background

In September 2020, the Court of Justice of the European Union (CJEU) ruled in the case of Recorded Artists Actors Performers Ltd v Phonographic Performance (Ireland) Ltd and Others (Case C-265/19), known as the “RAAP Judgment”; that the right to equitable remuneration, as defined in Article 8(2) of the Rental and Lending Rights Directive (“RLR Directive”), extends to music producers and performers from outside the European Union (EU) and European Economic Area (EEA) whenever their music is broadcast or publicly played within the EU. The CJEU’s decision is significant and can be found in detail here .

In the wake of the RAAP Judgment, the European Commission (referred to as the “Commission”) issued a call for evidence in July 2022, seeking input on the compensation for non-EU music performers and producers within the EU.

After receiving evidence submissions, the Commission released a study in April 2023, which examined the international dimension of the single equitable remuneration right for phonogram performers and producers, as well as its potential impact on the European creative sector. This study aimed to expand upon the RAAP Judgment by investigating the methods for compensating non-EU performers and producers when their music is played in the EU.

In the wake of the RAAP Judgment, the European Commission (referred to as the “Commission”) issued a call for evidence in July 2022, seeking input on the compensation for non-EU music performers and producers within the EU.

After receiving evidence submissions, the Commission released a study in April 2023, which examined the international dimension of the single equitable remuneration right for phonogram performers and producers, as well as its potential impact on the European creative sector. This study aimed to expand upon the RAAP Judgment by investigating the methods for compensating non-EU performers and producers when their music is played in the EU.

Announced on September 11, 2023 , consultation of the Commission seeks to gather feedback on three main aspects:
-The implications and consequences resulting from the RAAP Judgment
-The potential effects of a legislative proposal designed to establish material reciprocity with third
countries concerning the compensation of non-EU/EEA music performers and phonogram producers
– implementation of the single equitable remuneration right across various EU Member States

The impact of the RAAP Judgment on the legislation and practices of CMOs in the EU and beyond will be seen in the coming period. What is certain is that these changes will, over time, affect all rightsholders, not only in the music industry.