RAAP-PPI
On 8 September 2020, the Court of Justice of the European Union (CJEU) delivered its judgment in the case of Recorded Artists Actors Performers (RAAP) v Phonographic Performance Ireland (PPI). This prompted the Dutch government to introduce a legislative amendment which came into force on 1 January 2021. Under the Neighbouring Rights Act, only repertoire where the original master owner is established in a country that has signed the Rome Convention is protected against all forms of public communication. The United States has not ratified the Rome Convention. In the case of web or simulcasting, repertoire from all countries that have ratified the WPPT Treaty, including the US, is represented by Sena. The distinction between protection based on the Rome Convention and that based on the WPPT will cease to apply as a result of the legislative amendment effective from 1 January 2021. Sena is therefore compelled to increase its rates as of that date. Negotiations will be held in the near future with the representative organisations of music users to reach agreements on rate adjustments.
The use of repertoire whose original master rights holder is a US national is significant. All rights holders of this repertoire, as well as repertoire from other countries that have ratified the WPPT Treaty, are eligible for a share of the licence revenues received from the 2021 music year onwards.
The RAAP-PPI judgment states that the substantive reciprocity as laid down in Article 15.3 of the WPPT Treaty, on the basis of which primarily US rights holders have to date been excluded from collection and distribution, can only be regulated at EU level. Several Member States, including the Dutch government, have since urged the European Commission to take action in this regard. In that case, both the tariff adjustments and the changes to the distribution policy will be reversed as of that date.
Update 9 December 2025: The RAAP allowance will remain in force in 2026
The RAAP surcharge will remain in force in 2026 as well. As in 2025, a surcharge of 26.6% will be applied to the rates.
Update 17 October 2024: The RAAP allowance remains in force
The lobbying campaign to persuade the European Commission to reinstate the option of applying material reciprocity for Member States within the European Union is still ongoing. The Ministry of Justice and Security, VNO-NCW, MKB-Nederland and the public and commercial broadcasters, like Sena, are pressing for action by the European Commission. This involves collaboration with several sister organisations in Europe, as well as IMPALA, the trade association for independent record companies.
As a result of the European Parliament elections in June this year, no progress could be made. It is now up to European Commissioner Henna Virkkunen, who is due to take office later this year, to take action. This will take some time. Consequently, the RAAP surcharge will remain in force in 2025 as well. The agreement with VNO-NCW and MKB-Nederland, under which a 26.6% surcharge is applied to the rates, has been extended by one year for this purpose.
