The US and Europe treat music differently. In the US, music is treated as a Product (Economic Right), whereas in Europe, it is treated as an extension of the Person (Moral Right). Practically, this means the US uses “Statutory Rates” (fixed prices) while Europe uses “Percentage Rates” (negotiated cuts). If you don’t understand the difference, you might be under-collecting in one of the world’s biggest markets.
If you look at your royalty statement, you might notice that a stream in London pays a different amount than a stream in Los Angeles. This isn’t random; it’s the result of two completely different legal systems operating on the same song.
Here are the four critical differences between the American and European publishing models.
1. The Money: Statutory Rate vs. Percentage Rate
This is the biggest financial difference.
- The US System (Statutory Rate): In the United States, the government sets the price of a song. The Copyright Royalty Board (CRB) decides exactly how much a mechanical royalty is worth.
- Physical/Download: Historically 9.1 cents per copy (now indexed to inflation).
- Streaming: A complex formula, roughly 15.1% of the service’s revenue (as of 2024-2027).
- The European System (Percentage Rate): In the UK and Europe, there is no government price tag. Instead, rates are based on a percentage of the Dealer Price (PPD).
- Physical: Usually around 8.75% to 9% of the wholesale price of the CD/Vinyl.
- Streaming: Negotiated percentages between societies and DSPs.
The Impact: In the US, you get paid a fixed amount regardless of how much the CD sells for. In Europe, if the CD price goes up, your royalty goes up.
2. The Collection: Fragmented vs. Centralized
How many phone calls do you have to make to get your money?
- The US System (Fragmented): The US loves competition. You have:
- PROs: ASCAP, BMI, SESAC, GMR (for Performance).
- MROs: The MLC, HFA (for Mechanicals).
- SoundExchange: (for Digital Radio).
- Result: You need at least three different registrations to be fully covered.
- The European System (Centralized CMOs): Europe prefers efficiency. Most countries have one Collective Management Organization (CMO) that handles everything.
- Germany: GEMA collects Performance AND Mechanicals.
- France: SACEM collects Performance AND Mechanicals.
- UK: PRS for Music (Performance) and MCPS (Mechanicals) are separate but operate under a joint venture.
- Result: Often just one registration covers both sides of the coin.
3. The Rights: Work-for-Hire vs. Moral Rights
This is a philosophical difference that affects your ownership.
- The US System (Work-for-Hire): In the US, a corporation can be considered the “Author” of a song. If you sign a “Work-for-Hire” agreement (common in jingles or film scores), you legally never wrote the song. The company did.
- The European System (Moral Rights / Droit d’auteur): Europe follows the “Author’s Right” system. Legally, the creator is always the author. You can sell the money (economic rights), but you cannot sell your name (moral rights).
- Example: In Europe, even if you sell your entire catalog, you still have the legal right to be credited as the writer. In the US, you can waive that right.
4. The “Black Box” Risk
Because the systems are different, they often fail to talk to each other.
- US to Europe: If an American song is streamed in France, SACEM collects the money. If they don’t see a “SACEM Member” attached to the song, they hold the money. They might send it to ASCAP eventually, but often the Mechanical portion gets lost because ASCAP doesn’t collect mechanicals.
- Europe to US: If a British song is streamed in the US, The MLC collects the mechanicals. If the British writer isn’t registered with The MLC (or an admin like Audiobulb), that money sits in the US Black Box forever.
Comparison: At a Glance
| Feature | USA | UK / Europe |
| Mechanical Rate | Fixed (Statutory) | Percentage of Price |
| Who Collects? | Divided (PROs + MLC) | Unified (CMOs) |
| Can a Company be Author? | Yes (Work-for-Hire) | No (Moral Rights) |
| Digital Radio | SoundExchange | Neighboring Rights Soc. |
FAQ: Transatlantic Royalties
If I am American, do I get “Moral Rights” in Europe?
Generally, yes. When your music is used in Europe, European laws apply. This means you have stronger protection against your music being used in “derogatory” ways (like in a political hate ad) in France than you might in the US.
Which system pays more?
It depends on the format. For physical sales, the European percentage model can sometimes yield higher returns on expensive items (like Box Sets). For streaming, the rates are becoming globally similar, but the currency exchange rate plays a huge role in what finally hits your bank account.
Do I need a different publisher for Europe?
You don’t need a different publisher, but you need a publisher with Global Reach. Audiobulb acts as your “Passport,” translating your US registrations into UK/European formats so you get paid correctly in both systems.
Summary
The music world is split into two systems: the “Economic” West and the “Moral” East (of the Atlantic). If you only optimize for one, you lose in the other.
Your Next Step: Don’t let the Atlantic Ocean be a barrier to your income. Sign up with Audiobulb, and we will ensure your catalog is correctly registered in both the US “Statutory” system and the European “CMO” system.