The US Copyright Office has launched an inquiry into Performing Rights Organizations (PROs) in after concerns have been raised by venues and restaurants about receiving multiple royalty demands.
Until 2013, the United States had three PROs. In practice, these organizations contract with songwriters and publishers to license the public performance rights of their work. Licenses could then be signed over to users, ranging from live venues to streaming services, who wish to perform the copyrighted music in the PROs catalog.
During this time, a general licensee like a bar, restaurant or store could obtain licenses from these three PROs and feel confident they were not infringing on any music copyrights. Once GMR became the first new PRO in 70 years when it opened in 2013, more followed soon after.
The advent of these PROs has complicated the licensing process and created issues for users. On September 11, 2024, three members of the House Judiciary Committee wrote a letter relaying the concerns of music licensees who requested the Copyright Office to examine how PROs handle licensing fee payments.
Publishing is a large part of an artist’s income. Therefore, a key component of a PROs collecting royalties from their licensees and distributing those funds to the musicians they are contracted with. That process was more simple when there were only three organizations to send payments to.
Licensees have reported receiving demands for royalties from new entities and that many small businesses feel compelled to pay them on top of what they have already been paying. The music licensees’ letter states that they are concerned that the growing presence of PROs “represents an ever-present danger of infringement allegations and potential litigation risk from new and unknown sources.”
Due to these concerns, the Copyright Office is examining how various PROs currently gather information from live music venues, music services like streaming apps and other general licensees about the public performance of their copyrighted catalog.
Additionally, they are seeking public input on the matter. Artists, venue owners and industry professionals are encouraged to provide their input on the matter. Their thoughts from this perspective can be shared via the regulations.gov website until April 11, 2025.
Having a clear understanding of these issues is important because that allows the copyrights of all artists to be protected equally. For instance, it can be more difficult to gather information on how a lesser known independent artists collect licensee payments compared to a larger artist, but they both still need to be paid. Having all possible information on this matter will help protect that the rights of those creating the music and provided a more clear financial expectations for licensees.
If you wish to learn more about this matter, visit copyright.gov for more information.
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