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Musicians’ union alleges members lost out on €2.8m in royalties

RAAP organisation claims PPI is wrongfully retaining money due to its members

The Recorded Artists Actors Performers organisation has brought Commercial Court proceedings against Phonographic Performance Ireland
Mon Oct 17 2016 - 18:57

An organisation representing recording artists and performers says its members have lost out on at least €2.8 million in royalties they should have got from having their work performed abroad.

The losses arise from a “flawed interpretation” of international copyright agreements, it is claimed.

The Recorded Artists Actors Performers (RAAP) organisation claims the company representing the interests of international record companies, Phonographic Performance Ireland (PPI) Ltd, is wrongfully retaining money due to RAAP members.

RAAP has brought Commercial Court proceedings against PPI, which is owned and operated by the record companies and collects royalties for recording artists.

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The case is also against the Minister for Jobs, Enterprise and Innovation, Mary Mitchell O’Connor, and the State in relation to their role in ensuring compliance with copyright laws.

Dispute

Mr Justice Brian McGovern admitted the case to the Commercial Court list on the application of Johnathan Newman SC.

Counsel said the core of the case was whether US performers should get royalties on performances in Ireland when Irish performers do not get the same in the United States.

In its action, RAAP claims, under a 2002 agreement, PPI agreed to pay 50 per cent of royalty income (to RAAP) for any qualifying recording in any qualifying country.

A dispute arose in 2013 when PPI began making deductions from the amount for qualifying recordings where they did not take place in a qualifying country.

RAAP claims the PPI retains for itself, and its record company members and members of foreign affiliates, not just 50 per cent of the income collected from “qualifying” recordings, but up to 100 per cent of income from other recordings that PPI believes to be either non-qualifying or only partially qualifying.

RAAP claims, as a result of alleged breach of the agreement, it has suffered loss and damage, including loss of €2.8 million between 2013 and 2015 alleged to have been retained by PPI from collected royalties.

RAAP is seeking alternative reliefs against the Minister and the State, including a declaration the Copyright and Related Rights Act 2000 does not properly transpose EU copyright directives into Irish law.