SoundExchange Says EU Policy Could Put American Artist Royalties at Risk
A coalition led by SoundExchange warned the U.S. Trade Representative that a proposed EU policy shift could jeopardize nearly $300 million in annual royalties paid to American recording artists and rights owners.
Short answer
On July 8, 2026, SoundExchange, A2IM, ASCAP, BMI, the Recording Academy, SAG-AFTRA, and other music organizations sent a letter to the U.S. Trade Representative opposing a possible European Commission move from national treatment to material reciprocity for performer and recording-rights royalties. The coalition says the change could put nearly $300 million in annual royalties for American artists and rights owners at risk. Independent artists with U.S. recordings used overseas should confirm their SoundExchange registration, International Mandate, ISRCs, performer credits, ownership shares, and foreign collection setup before policy fights turn into missing statement lines.
SoundExchange and a coalition of U.S. music organizations say a possible EU policy shift could put nearly $300 million in annual royalties for American recording artists and rights owners at risk. If your recordings earn outside the United States, check your neighboring-rights setup now.
Key takeaways
- On July 8, 2026, SoundExchange and other music organizations asked the U.S. Trade Representative to oppose a European Commission proposal they say could reduce payments to American artists.
- The dispute is about national treatment, the rule that foreign recording artists should be treated like domestic rightsholders for certain royalties.
- The coalition says a move to material reciprocity could jeopardize nearly $300 million in annual royalties now paid to American artists and rights owners.
- Artists should confirm SoundExchange registration, international mandates, ISRCs, performer credits, ownership shares, and statement lines before the missing money is harder to trace.
What happened?
On July 8, 2026, SoundExchange published a letter signed by A2IM, ASCAP, BMI, the Recording Academy, SAG-AFTRA, the Artist Rights Alliance, and other music organizations. The letter asks the U.S. Trade Representative to oppose a possible European Commission proposal that would change how American performers and recording owners are treated for certain European royalties.
The coalition says the proposal would move the EU away from national treatment and toward material reciprocity. In plain English, Europe could condition some royalty eligibility on whether the United States offers the same right at home. Because U.S. AM/FM radio does not pay performers and labels for sound recordings, the coalition says American artists could lose foreign payments they currently receive.
Annual royalties the coalition says could be at risk
EU member states the letter says currently provide national treatment
Year of the RAAP court decision behind the dispute
Reason to check your foreign collection setup now
Why independent artists should care
This is a neighboring-rights story, not a Spotify stream-rate story. It affects money tied to recordings being performed in foreign markets, usually collected through organizations like SoundExchange, PPL, Re:Sound, and other CMOs. If you own masters or perform on recordings, that lane can matter even when your distributor is already paying streaming royalties.
| Useful check | Bad assumption | |
|---|---|---|
| Collection | You have a neighboring-rights administrator and foreign mandate | Your distributor collects every royalty attached to the recording |
| Metadata | ISRCs, performers, rights owners, and shares are correct | A song title and artist name are enough for foreign matching |
| Statements | International lines are reviewed before policy changes hit | Missing foreign income is too small to investigate |
The boring setup matters most when a foreign royalty lane gets political.
What to do now
Check your mandate
If you use SoundExchange, log into SXDirect and confirm whether your International Mandate is active. If you use another neighboring-rights administrator, ask which European societies they collect from and whether your repertoire is fully registered.
Clean the recording data
Make sure each recording has a correct ISRC, performer list, rights-owner split, and territory information. Foreign collections depend on matching data, and bad metadata can look like a policy problem when it is really a registration problem.
What is still unclear?
This is not law yet
The coalition is responding to a possible European Commission proposal. The final policy could change, and the U.S. response is not settled. The practical move is not panic. It is making sure you are set up to collect what is available while the policy fight plays out.
Sources
- SoundExchange: Music industry organizations urge USTR to oppose EU proposal that threatens nearly $300 million in annual royalties for American artists
- SoundExchange coalition: USTR national treatment letter
- SoundExchange: International Partners
- Music Business Worldwide: Michael Huppe: EU Move Could Put American Music Royalties at Risk
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