Frequently Asked Questions

What is national treatment?

In global trade, “national treatment” is the principle that a nation should provide foreign entities the same benefits and protections it would its own nationals. This means that foreign recording artists and labels should receive the same types of royalties as the nationals of a given country. National treatment is fundamental and necessary for fair and equal trade. We believe that every creator, regardless of nationality, should be paid when their works are used. In the U.S., artists and record labels from all countries are treated equally.

Why does national treatment matter?

Sound recording performance rights (including radio and TV broadcasts and spins in bars and restaurants) represent a multibillion-dollar market globally, with U.S. music representing roughly 30 percent of global spins. However, some countries deny music creators royalties for the use of their work because of their nationality or country of origin. For example, as a result of the lack of national treatment protections, we estimate that U.S. creators alone are losing out on roughly $330 million in royalties annually.

Would the U.S. have to recognize a terrestrial right to ensure national treatment for Americans overseas?

International law does not prohibit music users in foreign countries from treating Americans or other non-citizens differently. So the answer is: No, a terrestrial right in the U.S. is not necessary to recognize national treatment overseas.

While SoundExchange and our partner organizations have worked tirelessly to advocate for a terrestrial broadcast performance right in the U.S., this is something that we have not yet achieved. However, it is not necessary to have the terrestrial right in the U.S. before Americans are treated fairly overseas.

In fact, many countries already provide U.S. nationals with the same non-discriminatory treatment they provide their own nationals, even though the U.S. doesn’t have a terrestrial right, including Germany, Brazil, Canada, and Spain.

How is national treatment achieved?

National treatment is often achieved through a change in a country’s local law, by which a country extends the same protections to foreign nationals that it provides for its own local creators. This often happens when countries enter into treaties or free trade agreements, where they agree to lower trade barriers and treat each other’s products and services on equal terms. A recent example is the United States-Mexico-Canada Agreement, which, for the first time, requires Canada to provide American creators with national treatment, giving them access to the same rights enjoyed by Canadian creators. In the U.S., artists and record labels from all countries are treated equally.

As an American performer, am I more likely to receive national treatment if I affiliate directly with a foreign collective rights management organization (CMO) or foreign neighboring rights agent?

No. Whether a creator is entitled to sound recording performance rights in any territory is a matter of local law, the nationality of the creator, and the facts around the work itself (where it was recorded, where it was first published, and the nationality of the record company). Direct affiliation with a foreign CMO doesn’t change any of those facts. Nor does working with a foreign neighboring rights agent.

For example, if a performer affiliates with SoundExchange for foreign collections, that performer will get full access to broadcast rights in that territory—if the performer qualifies under local law—even though SoundExchange administers digital rights in the U.S. Qualification is dependent on facts about the creator and the recording—not who is representing the creator in any given territory. 

This is why national treatment is so important: It ensures that all creators are treated equally and given access to the same rights enjoyed by local artists and labels.