The Stage

Composers fight to claim $25m in lost US royalties

Published Wednesday 2 March 2005 at 15:55

British composers are calling on the government to help them claim millions of pounds in royalties from the USA for the public performance of their music, as America continues to flout international copyright regulations.

According to the European Commission, musicians are losing up to $25 million a year in revenue as a result of the USA’s ongoing failure to comply with copyright obligations established with fellow members of the World Trade Organisation. Now British Music Rights, the national umbrella group representing composers, songwriters and publishers, has begun lobbying the UK government to ensure that British artists receive a fair deal when their music is played across the Atlantic.

Emma Pike, director general of BMR, said: “The US is the primary territory for UK creators and performers and it remains a vital area for British bands to be heard. The Performing Right Society collects royalties on behalf of American songwriters when their work is played in clubs, bars and restaurants over here but the US is failing to meet international standards on music royalties.

“We think the UK government has an important role to play in raising this issue with the US and in encouraging the US to remove this exemption.”

America’s Fairness in Music Licensing Act of 1998 introduced the controversial clause - nicknamed the “Bars and Grills” rule - to US copyright law that exempts 70% of bars and restaurants and more than 45% of shops and boutiques from paying royalties for playing music in their premises.

This legislation was challenged by the European Commission and the case was brought before the WTO’s Dispute Settlement Body following a complaint from the Irish Music Rights Organisation in 2000. The panel ruled that the US clause was in breach of the Trade-Related Aspects of Intellectual Property Rights Agreement - a WTO agreement establishing minimum levels of intellectual property protection - and called for it to be amended.

Subsequently the US government was instructed to pay compensation of $1.2 million per annum for three years to European rights holders. However, this temporary arrangement ended in December 2004 and there is still no evidence that the US intends to change its laws.

David Arnold, film composer and songwriter, said: “America is a key source of income for a huge number of British composers, songwriters and performers. As a film composer, a lot of my work originates and becomes financially viable in the American market and I am particularly concerned about the further erosion of our ability to be paid for any of this music which is broadcast in restaurants or on the radio.

“Indeed, many deals are done with American studios on the understanding that a certain amount of remuneration will come from these sources. It is vital that the US treats British creators with respect and fairness, at all levels, as the British do theirs, to ensure that we continue to see the US as a fair and viable market for our creativity.”

Some experts believe the inconsistency between the US failure to conform its law to WTO rules and its aggressive stance on global intellectual property protection under TRIPS has potentially wide ramifications, which could spread beyond copyright issues.

Said Pike: “The US is setting a very dangerous precedent for itself. It is the single largest exporter of copyright goods - by which I mean films, music and computer games.

“In order to export well, they rely on other countries complying with the TRIPS agreement. If America is not doing this itself, how can it expect other countries to do so? America should be setting an example - not opening up the possibility that other countries will follow their lead by flouting the intellectual property rights, whether in relation to music or any other product.”