Home / Insights / Will Performing Rights Organizations Come Under Closer Inspection?

Will Performing Rights Organizations Come Under Closer Inspection?

by | Oct 23, 2024 | Copyrights, Intellectual Property

The U.S. House Judiciary Committee recently sent a letter asking the Copyright Office to look into some issues with performing rights organizations, also known as PROs. PROs are groups that collect specific types of payments – called royalties – on behalf of songwriters and musicians. 

Essentially, they make sure artists get paid when their music is played in places like concerts, bars, restaurants, and on the radio. This role is crucial in ensuring that the creative efforts of artists are financially recognized and protected.

So, what is a royalty exactly? It is basically money that musicians or songwriters earn whenever their music is used. This could be from live performances, recordings on physical media, when their songs are featured in movies and TV shows, and so on. Royalties can also come from digital streaming platforms, which have become a significant revenue source in recent years.

Are PROs Treating Smaller Artists Fairly?

The Committee is worried about the growing number of PROs and how they share royalties, especially for smaller artists. They have noticed it is hard to figure out if lesser-known musicians are getting paid fairly compared to big-name stars. This issue highlights a larger concern about equity in the music industry, where independent artists often struggle to receive the recognition and compensation they deserve.

On the other hand, licensees – like bars and restaurants that play this music – have been getting requests for royalties from new PROs claiming to represent songwriters. This has them worried about the risk of litigation, such as infringement allegations, from different PROs. Overlapping claims can create confusion and frustration for businesses that simply want to comply with copyright laws. 

Reforms Could Be on the Horizon for PROs

The Committee is particularly concerned about BMI, which recently switched to a for-profit model, making it even less clear how they handle their finances. The Committee is asking the Copyright Office to dig into how PROs get information from licensees and how they distribute royalties. 

While the Copyright Office cannot directly change how PROs operate, investigations by Congressional committees and the US Copyright Office can bring attention to the issues and might lead to hearings or new legislation that might lead to reforms that benefit both artists and protect those who play their music. 

Categories

Get in Touch with Us

This field is hidden when viewing the form
This field is hidden when viewing the form
This field is for validation purposes and should be left unchanged.

Archives

Marks Gray P.A.

Connect with Us