President of Uruguay in negotiation talks to prevent Spotify shutdown

President Luis Lacalle Pou has recently revealed talks are underway with Spotify to prevent the streaming service company from phasing out its services in Uruguay. This comes after the country’s parliament voted to pass a new copyright bill requiring “fair and equitable remuneration.”

In a press conference reported by Teledoce last week, Uruguian President Pou revealed that discussions are taking place with Spotify in an attempt to convince the platform to reconsider its decision to leave Uruguay. Acknowledging Spotify’s significance, he stated, “You have to be balanced. We understand that it is a very important platform. In fact, this morning I received the notification that reached many.” While emphasizing the need to support artists and songwriters, the president expressed optimism about the ongoing talks, saying, “We are in talks; we are going to move forward, I hope. We are going to come to an agreement.”

Simultaneously, a Change.org petition urging the government (not Spotify) to “guarantee the permanence of Spotify in our country” has garnered over 37,000 signatures. In contrast, Spotify maintains its stance as the victim in this situation. A blog post titled “Spotify Is Being Pushed Out of Uruguay,” published last Friday, reiterated that the platform pays nearly 70% of its revenues in royalties. Regarding the new remuneration laws in Uruguay, Spotify urges the Uruguayan government to clarify that “record labels and publishers to whom we pay that ~70% should bear the responsibility for these costs.”

In October, the Uruguayan national parliament approved a budget bill incorporating two additional articles. Article 284 stipulates that social networks and the internet will be recognized as platforms wherein the reproduction of a song warrants financial remuneration for the performer, particularly if a link to the song is shared online. Concurrently, Article 285 introduces a provision into copyright law establishing the “right to fair and equitable remuneration” for agreements involving authors, composers, performers, directors, and screenwriters. This right pertains specifically to their authority over the public communication and accessibility of phonograms and audiovisual recordings.