The plan, which was unveiled on July 16, means that performers will benefit from the same term of protection as authors.
In addition, the copyright term that applies to co-written musical compositions will be harmonized. At present, works with multiple authors may benefit from different terms in different EU member states.
The proposal comes after the Commission said in February this year that it would bring forward legislation to extend the term.
The Commission also adopted a green paper, Copyright in the Knowledge Economy, which highlights the importance of copyright in the development of a modern economy.
Internal Market and Services Commissioner Charlie McCreevy said these copyright measures are necessary as the EU needed a more holistic approach in IP matters.
"I am committed to concentrate all necessary efforts to ensure that performers have a decent income and that there will be a European-based music industry in the years to come. The proposal on term extension has a strong social component and the Green Paper is deeply embedded in the overall societal and knowledge context," he said.
According to the Commission, a 95-year term (which is the same as in the US) is needed to bridge the income gap that performers face when they turn 70, as their early performances recorded in their twenties lose protection.
The extended term will enable performers to earn money for a longer period of time and certainly until the end of their lives. It is also expected to benefit record producers as it would generate additional revenue from the sale of records in shops and on the internet.
For musical compositions that normally have several authors, the Commission will amend the copyright term directive to say that the copyright will expire 70 years after the death of the last surviving author, whether it is the author of the lyrics or the composer of the music.
John Kennedy, chairman of International Federation for the Phonographic Industry (IFPI), said the copyright extension is vital to the competitiveness of the European music sector.
"Equalizing term of protection with the US will achieve fairness for European artists and promote industry investment in new talent, with a positive impact on consumer choice," he said in a statement.
Helen Smith from Impala, which represents independent music companies, said: "Those most affected by this proposal will be hundreds of thousands of individual artists, as well as thousands of micro, small and medium-sized music companies which produce so much of the innovative music released in Europe today."
The Association of European Performers' Organisations (AEPO-ARTIS), which represents 27 European performers' collective management societies, also welcomed the proposal but urged the Commission to find more ways to protect the rights of performers.
"As commercial online and mobile services are soaring, it is urgently needed that something be done at a European level to sort out this situation," it said in a statement.
The Commission's proposal must be approved by EU member states and the European Parliament before it can come into effect.
