The US Copyright Office has launched an inquiry into the role of Performance Rights Organizations and their licensing revenue distribution practices at the request of Congress. Now broadcasters can let their voices be heard on the issue for a limited window.
The Office is gathering information on the increasing number of PROs and the growing financial costs imposed on licensees.
The inquiry aims to assess whether the rise in PROs has placed additional financial and administrative burdens on businesses such as bars, restaurants, and music venues, which must obtain public performance licenses. Lawmakers have raised concerns that new PROs are demanding royalty payments, sometimes under threat of legal action, in addition to those already paid to established organizations like ASCAP, BMI, and SESAC.
The Copyright Office is also examining how PROs distribute general licensing revenue, particularly whether smaller and independent artists receive fair compensation compared to major publishers and well-known musicians. This review includes the accuracy of data collection methods, potential gaps in royalty payments, and the impact of technological advancements on reporting and distribution practices.
As radio expands into digital platforms, new compliance standards and transparency measures could reshape music licensing. While greater clarity on revenue allocation may benefit broadcasters, added regulations could create operational hurdles or new payment systems.
Interested parties have until April 11 to submit written comments, with reply comments due by May 27. Submissions must be made electronically through regulations.gov, with further details available on the Copyright Office’s website.
The MIC Coalition, which counts the NAB, the National Religious Broadcasters Music License Committee, and Radio Music License Committee among its members, said in a release, “The MIC Coalition applauds the Copyright Office for addressing this critical issue and looks forward to contributing to the upcoming NOI process. 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. Addressing this fragmentation will help business owners nationwide and create a fair and more efficient music licensing system for everyone.”
The very idea of paying royalties seems fair however today it’s legalized payroll. The whole system is corrupt. The artists get very little .the writers get a little more but enter BMI, ASCAP AND ANYONE ELSE WHO SCAMS RADIO STATION OWNERS. If we never played your song we wouldn’t have this conversation. Eliminate the bullshit. Abolish the Royality Tax. The collectors are living like fat cats on our dime.
thanks for the story. oh im so gonna complain how GMR works and how they forced their agreement on stations