• Ruling to increase performer earnings from recordings by up to 30%
• Decision could release millions of Euro back to performers
8th September 2020: In a landmark ruling today, the European Court of Justice paved the way for performers to receive an equal share on income earned from recordings. The ruling will mean that record labels will be forced to pay performers an increased share of revenue collected from the broadcast and public performance of sound recordings.
The decision will be a welcome boost for performers who have seen their earnings through live events severely affected due to Covid-19.
The legal action was taken by R.A.A.P., the Irish collective management organisation representing performers against P.P.I., which represents the three major music labels of Universal Music, Sony Music and Warner Music. R.A.A.P. challenged practices introduced by P.P.I. of diverting performer monies to record labels through a combination of devices effectively reducing a potential 50% share paid to performers, to approximately 20%. The Irish State was joined in the proceedings.
The ruling now makes clear that each time a musical work generates a payment to the record label for broadcasting or public performance, the performers on that recording are entitled to receive an equal share of earnings.
Following the judgement, R.A.A.P. Chairman Paddy Cole said it was a vindication of the actions that they had been forced to take to protect the economic rights of performers and look for a more equitable share of the royalties generated.
“At a time when the income of so many talented and gifted music professionals has been decimated by the Covid pandemic it is some good news that the European Court of Justice recognises the need to protect the economic welfare of performers.”stated Cole.
The matter will now go back to the Irish High Court, for a finding based on the judgment of the European Court, attention will then turn to the Irish government to amend the legislation.