Neighbouring Rights Act

The Neighbouring Rights Act has been in force in the Netherlands since 1 July 1993. Over the years, more agreements have been concluded by the Dutch State and the European Union. As a result, an increasing proportion of that music is protected and we have to pay compensation to more and more rights holders. The rates for a music licence have therefore been adjusted accordingly, because more and more protected repertoire is being played in businesses, online or on radio and television..

The Dutch Neighbouring Rights Act (WNR) was introduced in 1993 and gives performing artists, film or record companies, and broadcasting organisations the right to:

  • Decide whether a performance may be recorded;

  • Decide whether a recording may be reproduced and marketed;

  • Decide whether a recording may be broadcast, shown or performed.

Music released on a commercial basis may always be broadcast or performed, provided that fair compensation is paid. There is therefore a right to remuneration. Violation of the Neighbouring Rights Act is a criminal offence. When the WNR was introduced, the government commissioned Sena to regulate the remuneration rights of all Dutch artists and record producers on the basis of the Neighbouring Rights Act.

A recent example of such a legislative change is the RAAP-PPI ruling by the European Court of Justice. This has led to a legislative change in the Netherlands as of 1 January 2021. As a result of this legislative change, we are obliged to invoice music consumers a surcharge.

The amendment to the law means that the repertoire for which we collect royalties has been expanded. Under the Neighbouring Rights Act, only repertoire whose original master owner (the owner of the original master tape) is based in a country that has signed the Rome Convention was previously protected for all forms of publication under the Sena mandate. Since 1 January 2021, repertoire from all countries that have signed the WPPT Treaty

(WIPO Performances and Phonograms Treaty), including the United States, is also protected and must be represented by Sena. This means that more repertoire is protected, and we are therefore obliged to charge a surcharge.

We have entered into discussions with the Expert Committee on Copyright (CAR) about the consequences of the legislative change for rights holders and music users and in order to avoid lengthy legal proceedings. Taking into account the interests of both music users and our rights holders, the parties have reached a negotiated settlement and concluded a commercial agreement.

The following surcharges will apply to the current rates from 1 January 2021:

2021 + 12.5%

2022 + 26.6%

2023 + 26.6%