02/15/2025
Copyright Office Opens Inquiry Into U.S. PROs
The U.S. Copyright Office (USCO) has been formally asked to examine the current licensing and royalty distribution practices of performing rights organizations (PROs). This request, initiated by the House Judiciary Committee’s Subcommittee on Courts, Intellectual Property, and the Internet, comes in response to growing concerns from music creators, publishers, broadcasters, online platforms, and venues.
For decades, PROs such as ASCAP, BMI, and SESAC have served as the backbone of music licensing in the U.S., ensuring that songwriters and composers receive fair compensation when their works are publicly performed. However, in recent years, the landscape has changed significantly, leading to increasing frustration among both licensees (businesses that pay for music rights) and music rights holders.
The Proliferation of PROs: A Growing Concern for Licensees
Unlike many countries, where a single PRO handles music licensing, the U.S. has traditionally required businesses to engage with multiple PROs to secure full rights to publicly play music. For over 70 years, there were only three major PROs: ASCAP, BMI, and SESAC. Then, in 2013, Global Music Rights (GMR) entered the scene, and since then, even more PROs have emerged, leading to new and complex challenges for businesses.
The biggest issue is that bars, restaurants, stores, hotels, and music venues, which have always relied on blanket licenses from the established PROs, are now receiving demands for additional payments from newer organizations claiming to represent songwriters. Some of these demands come with legal threats, creating an environment where small businesses feel forced to pay extra fees to avoid potential lawsuits.
Many licensees worry that this expansion of PROs has led to an increased risk of infringement claims from unknown or newly formed organizations. Given these concerns, the House Judiciary Committee is urging the USCO to investigate:
Why new PROs are emerging at an increasing rate.
The financial and operational burden imposed on businesses that now must deal with multiple licensing entities.
How to create clearer and fairer licensing structures that don’t penalize businesses with legal threats.
How Are Royalties Being Distributed? A Lack of Transparency
Beyond the licensing confusion, there is a serious lack of transparency in how PROs distribute royalties to songwriters and publishers.
PROs collect license fees and are responsible for ensuring that royalties are paid fairly based on how often and where music is played. However, many independent artists and small publishers are left wondering why they see little to no increase in their royalties, despite the growing number of venues paying for licenses.
Even I, as a music rights holder, have often questioned: where is this money going? If so many venues are paying for music licenses, why do songwriters barely see a difference in their royalty checks? This is a question that the USCO must investigate thoroughly.
The Committee has requested that the USCO examine:
How PROs track music performances and determine royalty payments for artists.
Whether independent songwriters and small publishers are being compensated fairly in comparison to major artists and big publishing companies.
How much information PROs provide to the public regarding their revenue distribution.
If there are gaps, inaccuracies, or inefficiencies in how royalties are paid out.
Whether current laws or regulations contribute to unfair or outdated practices.
What technological or business improvements could be implemented to ensure fairer payments for all songwriters.
PROs Should Not Fear Transparency
Some PROs may urge their clients to write letters in opposition to this investigation, likely fearing that increased scrutiny will lead to unwanted changes. But the reality is if PROs are doing their job properly, they should have nothing to fear.
If a PRO is fairly collecting and distributing royalties based on accurate data, then an investigation should only reinforce its credibility. However, if there are hidden inefficiencies, unfair payouts, or questionable practices, then it is only right for songwriters and publishers to demand answers.
The fact that so many venues are paying for licenses, yet songwriters see little financial difference in their earnings, is a red flag. This is not an attack on PROs, it is a call for greater accountability and fairness in the music industry.
What’s Next? A Step Toward Fairer Music Licensing
The House Judiciary Committee is awaiting a response from the U.S. Copyright Office, and songwriters, publishers, and businesses alike should closely follow the developments of this investigation.
At its core, this effort is about ensuring that the people who create music are compensated fairly and that businesses are not being forced to pay unnecessary or excessive fees. Music licensing should be clear, transparent, and beneficial to everyone involved, not a system riddled with confusion, legal threats, and missing royalties.
For the songwriters and rights holders reading this: if you’ve ever questioned where your royalties are going, now is the time to demand answers.
Submit your concerns here
https://www.copyright.gov/policy/pro-issues/
Or for more information go to https://berelations.com/index.php/2025/02/15/the-growing-concerns-over-pros-a-call-for-transparency-and-fairness/
Best regards,
Cheyna Pierre
We specialize in Digital Music Distribution, Publishing, Licensing, Press Releases and more.
