(Hypebot) — The U.S. Copyright Office has published a “Notice of Inquiry” to collect information on performance rights organizations (PROs). The inquiry into ASCAP, BMI, SESAC, Global Music Rights (GMR) and others comes at the behest of Congress and organizations representing venues, promoters, songwriters and music publishers.
Copyright Office to investigate PROs: ASCAP, BMI, SESAC, GMR
Of interest to the the U.S. Copyright Office is the growing number of PROs, the licence to play recorded or live music that each requires and a lack of transparency as to what songs are covered by each licensee and how the money collected is divided and paid to artists and rightsholders.
Under the current system promoters, venues and artists must pay all US PROs for every show even when the songs performed were registered to a single rights organization.
History of Blanket PRO licences
“PROs were formed to offer collective or blanket licenses to address these challenges. Such licenses have proven more efficient for businesses, songwriters, and publishers when compared to song-by-song licensing and enforcement,” according to the Copyright Office.
But the number of PROs in the United States is growing., “potentially undermining licensing efficiencies.” the announcement continued.”Further, PROs do not all disclose comprehensive information concerning the works that are covered by their licenses, and their royalty distribution practices and policies.”
The MIC Coalition, which includes bar and restaurant owners, exhibition, fair and venue managers, and others applauded the inquiry: “The continued proliferation of PROs creates growing challenges for businesses of all sizes, further complicating an already complex licensing system. By launching this inquiry, the Copyright Office can drive much-needed improvements to the music licensing marketplace by helping provide increased transparency and competition.”
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of the Skyline Artists Agency
