(Hypebot) — The National Independent Venue Association (NIVA) says that U.S. performing rights are broken and is demanding change. The comments came in a new letter filed with the Copyright Office which is investigating U.S. Performing Rights Organizations (PROs).
The investigation of ASCAP, BMI, SESAC and other PROs is at the behest of Congress and organizations representing venues and songwriters.
“The current PRO system is broken,” writes NIVA, ”and it’s hurting independent venues, promoters, and the very artists we exist to support.”
What the Copyright Office is investigating
Of particular interest to the Copyright Office (CO) is the growing number of PROs and the licenses to play recorded or live music that each requires. There are also concerns over transparency, what songs are covered by licenses and how artists are paid.
Under the current system, venues must pay all US PROs for every show even when the songs performed were registered to a single rights organization.
U.S. Performing Rights are broken
“Small and mid-sized venues are being overcharged compared to corporate promoters,” NIVA told the CO. “For years, BMI and ASCAP offered steep discounts to major companies like Live Nation while charging independents two to five times more for the same music use.”
A NIVA analysis found that 94% of the music performed at most small venues is written by the artist on stage. “But the royalties we pay are often distributed to entirely different writers,” says NIVA. “Without a unified, public database of which PRO represents which songs, many venues pay all four major PROs just to be safe—an unreasonable and unaffordable burden for small businesses.
Six PRO Licenses For Every Show
A proliferation of new PROs – each demanding a blanket license – is squeezing venues and promoters further. They once paid fees on all shows to ASCAP, BMI and later SESAC. Now Global Music Rights (GMR), PRO Music Rights, and AllTrack all want payment.
“Some newer entrants have used vague claims of repertoire ownership to intimidate small venues into signing licenses,” according to NIVA, “with no clear evidence of what music they actually control.”
What’s Next?
In the coming months, the Copyright Office will review comments all stakeholder including PROs. venues and songwriters. It is expected to eventually issue a report identifying areas of concern and recommending policy reforms. Depending on findings, this could lead to new rules or legislation.
“We are committed to pushing for a system that works for independent stages, working artists, and the future of live performance,” NIVA said in a letter to members.
Read NIVAs full comments to the U.S. Copyright Office here.
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
