Universal Music Triumphs in Dutch Streaming Royalty Lawsuit

Photo Credit: Catalina Federova

Universal does not have to pay Dutch musicians Arriën Molema, Henk Westbroek, and Marinus de Goederen substantially more on streaming plays, an Amsterdam court ruled.

Universal Music was victorious in a court case in Amsterdam that centered on whether the company underpaid three Dutch musicians in streaming royalties.

According to an Amsterdam court on Wednesday, Universal Music does not owe Dutch artists Arriën Molema, Henk Westbroek, and Marinus de Goederen larger shares of streaming revenue. The three musicians were seeking at least half of the earnings from their streams on Apple Music, Spotify, and YouTube.

The three argued their music was delivered nearly finished to Universal, with little work necessary on the label’s end to deliver the finished product to streaming platforms—unlike traditional physical releases such as vinyl or CD. The musicians also pointed out that streaming was practically nonexistent back when they signed their contracts.

However, Universal Music argued that it made significant investments to generate income from streaming platforms online, and that payment arrangements made at the time (in 2006) were transparent.

“If the parties had known exactly what role streaming would play, they might have made specific agreements about it. However, this does not mean that applying the agreed-upon royalty provisions to streaming is unacceptable,” the court determined, noting that the musicians’ claim that record companies “have applied a standard 50/50 revenue split” in the streaming age is inaccurate.

The court’s ruling specifically pertained to agreements made between Universal and the three artists—not the broader Dutch music industry.

“It has not been established that Universal misapplied the record contracts and paid too low royalties,” wrote the court.

A spokesperson for Universal said the company was pleased with the Amsterdam court’s decision.

“The door was and remains open for the artists to further discuss the relationship, the contracts, and their performances,” a spokesperson for Universal said in a statement to Dutch broadcaster NOS.

This case is not unlike others, which posit that because an artist signed their contract before streaming was prevalent—and they understood how important it would become in getting their music to the broader public—they should be eligible to renegotiate to receive higher royalties. The topic of royalties in the streaming age has and continues to remain a hot-button issue in the broader industry.