US efficiency rights group BMI has launched a marketing campaign urging its associates (songwriters, composers, and publishers) to make their voices heard within the US Copyright Workplace’s inquiry into PROs.
The USCO launched an investigation on Monday (February 10) in an effort to reply “questions associated to the rise within the variety of PROs and the licensing income distribution practices of PROs.”
The inquiry was triggered by a letter despatched final 12 months by three US Home representatives on the Home Judiciary Committee. The letter echoed considerations from small companies that new PROs arrange lately are making it harder to make sure that music performed publicly by these companies is correctly licensed.
“Licensees have reported receiving calls for for royalties from new entities claiming to characterize songwriters, and threatening litigation if the calls for will not be met,” the letter said.
“Contemplating that the potential for substantial statutory copyright damages poses an existential danger for many bars, eating places, and different small companies, many really feel compelled to pay these entities on high of what they already pay for blanket licenses from the standard PROs.”
BMI, which counts as a kind of “conventional PROs,” has requested its associates – songwriters and music publishers – to submit feedback to the USCO, urging it to not introduce new laws on efficiency rights orgs.
“We imagine the aim of those licensees [businesses that license music from PROs] is to not query how {the marketplace} features or name consideration to new PROs who’ve truly gained little or no traction within the business, however in the end to pay you much less to your artistic work,” BMI mentioned to songwriters and publishers.
“Sadly, this isn’t new. Licensees and their lobbying organizations have been making false and deceptive arguments like these with that very aim in thoughts for years. And as we at all times have, BMI will proceed to advocate tirelessly in your behalf to cease that from occurring.”
“We imagine the aim of those licensees [is] in the end to pay you much less to your artistic work.”
BMI
BMI ready a kind letter that its associates can undergo the USCO forward of an April 11, 2025, submission deadline. The complete textual content of the letter is beneath.
Of the six PROs working within the US, one – ASCAP – is a not-for-profit operation. The remaining 5 – BMI, SESAC, and comparatively new entrants World Music Rights (GMR), PRO Music Rights, and AllTrack – are run for revenue.
BMI was run as a not-for-profit for a lot of its eight-decade historical past till the group shifted to a for-profit mannequin in 2022. The next 12 months, it introduced it was being offered to personal fairness agency New Mountain Capital, a transfer that raised considerations amongst some songwriters that such a transfer might negatively influence their royalties.
Shortly earlier than the sale to New Mountain was made public, BMI introduced that it might cut back the payouts to songwriters and publishers from 90% of royalties collected to 85%. Following the sale, BMI allotted $100 million of the proceeds to its songwriter and writer associates.
Beneath is the complete textual content of BMI’s letter, which it’s urging associates to undergo the USCO.
February 11, 2025
Ms. Shira Perlmutter
Register of Copyrights
United States Copyright Workplace
Washington, D.C. 20559-6000
Pricey Register Perlmutter:
We’re writing in response to the Discover of Inquiry (NOI) printed by the U.S. Copyright Workplace within the Federal Register on February 10, 2025, titled “Points Associated to Performing Rights Organizations.” We acknowledge this inquiry was initiated in response to a September 2024 letter despatched to you by three Members of Congress. We strongly imagine that letter targeted solely on the attitude of music licensees and failed to contemplate our perspective as songwriters, composers and music publishers who earn our dwelling from the general public efficiency royalties collected by PROs. We’re equally upset that the questions posed in your inquiry additionally give attention to music customers, and never music creators.
That is regarding as a result of it’s obvious that the Congressional letter’s intention was to query the efficacy of the music licensing market as a way to additional a selected agenda of extra regulation of PROs and in the end allow licensees to pay much less to music creators and copyright homeowners for using our artistic work.
Sadly, this isn’t new. Licensees and their lobbying organizations have been making the identical false and deceptive arguments with that very aim in thoughts for years. Now they’re utilizing the emergence of latest PROs—who’ve gained little or no traction in buying any share of repertoire truly utilized by licensees—because the centerpiece of their renewed push for regulation.
We all know that new entrants are proof of a aggressive, vibrant and purposeful market. Competitors, significantly for creators, is constructive. Furthermore, we recognize that it’s vital for licensees to know who represents the music they use of their companies and—as representatives of our repertoire—for PROs to be clear about their catalogs. To this finish, BMI and ASCAP have already delivered an business answer known as Songview, which gives transparency round copyright possession. If different organizations will not be as dedicated to transparency, there are already state legal guidelines throughout the nation governing PROs that shield shoppers from misleading enterprise practices. We don’t imagine new regulation or oversight on us as creators or on BMI, the PRO that collects and pays our royalties, is required. What’s required is solely enforcement of present legal guidelines and laws.
In at present’s music business, streaming companies and the fractions of pennies they pay per-stream have made it much more tough for us to earn a dwelling. We depend on public efficiency royalties for our livelihoods now greater than ever. For this reason we additionally famous with curiosity the request for the Workplace to judge the gathering and distribution of common licensing {dollars}. As you understand, this can be a broad class that features, amongst others, bars, eating places, and different smaller venues with reside performances, and it’s well-known that music utilization on this class is essentially the most tough to seize. Furthermore, each greenback PROs spend monitoring information means {dollars} popping out of our royalty pool.
Once more, we imagine this can be a false situation raised by music customers for the precise function of decreasing license charges. Nevertheless, even accepting this concern as honest, it’s clear that the answer to this purported drawback mustn’t fall on us and our PROs. The duty of music customers to pay for the precise of public efficiency exists no matter and with out relation to the distribution practices of PROs. If licensees actually are involved about royalty distribution, we and our PRO would welcome extra reporting from them to higher seize their utilization of our music of their companies.
Lastly, relating to reside live performance venues, it’s commonplace apply that these licensees deduct public efficiency licensing charges straight out of the pockets of the artists acting at their venues (artists who’re fairly often songwriters). We imagine it might be helpful to understand how widespread this apply is, and whether or not the full charges they deduct exceed what they pay for his or her public efficiency licenses, if and when a venue has truly even taken the mandatory licenses.
Importantly, songwriters are the last word small enterprise homeowners who work exhausting at their career and deserve truthful compensation. We’re already essentially the most closely regulated phase of the music business. PROs exist to make sure we are able to proceed to earn a dwelling by way of our craft and hold creating the music that’s each a strong driver of the U.S. economic system and broadly loved all over the world.
Thanks to your consideration to our ideas on this matter.Music Enterprise Worldwide
