Digital Music Services Explore Pulling Out of Uruguay
By Pittaluga Abogados
The Uruguayan government is considering a new copyright law that would require music streaming services to pay royalties to performers, in addition to the royalties they already pay to record labels and songwriters. This is known as "equitable remuneration" or "performer equitable remuneration."
Spotify has threatened to pull out of Uruguay if the new law is passed. The company says that the additional royalties would be too expensive for it to operate in the country. The claim has been officially sent through a letter to Uruguay's Ministry of Culture. Other companies like Amazon, Apple Music and YouTube have also made similar claims to the Uruguayan government.
The proposed law is supported by the Uruguayan Society of Performers (SUDEI), which represents musicians and other performers. SUDEI argues that performers deserve to be compensated for their work, even when their music is streamed online.
The law is still under consideration by the Congress and has already been passed by the Senate.
