Paraguay lawmakers push streaming royalty legislation

Paraguayan Lawmakers Push Streaming Royalty Legislation for Artists

Legislators across multiple parties in Paraguay’s Chamber of Deputies introduced a bill to update copyright and neighboring rights regulations for the digital streaming era.

The Tech TL;DR:

• Streaming services like Spotify and YouTube could face mandatory digital tariffs under a new bill in Paraguay’s Chamber of Deputies.
• The legislation targets interactive streaming reproductions, aiming to secure direct compensation for vocalists and performing artists who currently lack a cut of digital payouts.
• Executive branch regulations would ultimately determine the exact percentage rates that multinational streaming firms must pay.

Proposal Mandates Equitable Tariffs for Performing Artists

The proposal seeks to guarantee that singers, vocalists, and performing artists receive an equitable tariff for the interactive reproduction of their recorded performances. The initiative mandates the use of collective management systems to administer the collection and distribution of these funds transparently. However, the exact percentage rate that global multinational platforms like YouTube and Spotify must pay remains deferred to the executive branch’s regulation if the law passes.

The music market’s institutional architecture in Paraguay currently relies on three collective management entities: Autores Paraguayos Asociados (APA) for composers, the Sociedad de Gestores de Productores Fonográficos del Paraguay (SGP) for record labels and producers, and the Entidad de Artistas Intérpretes o Ejecutantes (AIE). Under the current framework, streaming royalties route primarily through SGP, leaving AIE-represented performers outside digital payout liquidation cycles. Passing this modification would empower AIE to collect and distribute tariffs for digital streaming broadcasts.

Legislators Seek Approval Before the Year Ends

Officialist bench leader Deputy Miguel del Puerto stated that his bloc intends to secure approval before the current legislative period ends. “We consider this a reasonable proposal for the sector. We are going to work with colleagues from the different benches to achieve its approval before the end of the year, understanding it as a historical vindication for national interpreters,” Del Puerto said.

Deputy Yamil Esgaib clarified that the text—built jointly by Del Puerto and opposition legislator Rocío Vallejo—will avoid being rushed through on the spot. Instead, it will undergo participatory debate. “It is an initiative that we believe is fair and appropriate, but we are not going to approve it hastily. We will hold public hearings to listen to the parties,” Esgaib explained. He added that while creators and composers currently receive a percentage for musical works, interpreters who disseminate music via their voice or artistic execution earn nothing from streaming.