this post was submitted on 26 Nov 2023
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After reading the whole article, I still don't know what Uruguay wants to happen.
Found an earlier article by El Observador before the legislation passed. Under Uruguay's old laws Spotify, YouTube, an other streaming platforms paid little to nothing in artist royalties. With the new legislation artists will now see fair compensation.
The Guardian does a better job explaining Spotify's problem: do the royalties come from rights holders (I am assuming they're referring to record labels) or the streaming services? The later case they believe will cause them to pay double what they're paying for streaming rights.
The issue just needs to back to Uruguay's government to sort out who pays the artist royalties, or if both labels and streaming share a proportionate responsibility.
Thanks.
Putting the El Observador article through translate
Spotify says that it already pays for the rights. This understanding would mean that the players in Uruguay should work out how that is to be split.
Spotify fears that the new law turns what they pay currently, simply into one share of the total, implying an extreme increase of the cost.
What is Agadu? Seems like a pretty high tax considering the remaining 40% go to those who made the music .
AGADU is the society of authors. Kind of an union (it's not an union but sort of). It's suppossed role is defending the rights of authors
It's a copyright management firm. Some countries have government-sponsored monopolists for that. This looks like one of those.
The author of a song and the performers may not be the same (most obvious with covers). Most of the money collected by Agadu is presumably paid out to the authors/songwriters (or whoever they sold the rights to?), minus management fees. Whether the pay-out scheme is fair, may be another point of contention. Think about a live band playing covers by various authors in some bar: How is it tracked what they play, and how much should be given to each of the many different authors? I don't know how that works in Uruguay, but my country has a system of that sort.
How does this work for international performers though?
I mean, it sounds like they want their artists to recieve fair compensation.
I see that not everyone's a cynic, yet.
What does that mean, though?
And that's exactly why Spotify is leaving.
Spotify already paid rights holder (...the record labels, which is the one supposed to pay the artists). Under the new law, its ill defined which could make spotify pay to artists on top of paying the record labels, thus double the pay.