PERFORMANCE RIGHTS ORGANIZATIONS

 

In simple terms, PROs are organizations that collect royalties on behalf of songwriters and publishers. They are a type of collective management organization but with a global reach and repertoire. They collect royalties due to artists for the public performance of their songs in any commercial environment.

The primary function of PROs include; 

  • Issuing licenses to publishers, radio stations, restaurants, etc
  • Monitoring the use of the license to ensure absolute conformity with the license agreement. 
  • Collecting and distributing royalties payable as a result of the issued license.

It is important to note that PROs may also be referred to as Performance Rights Societies. 

The MCSN (Musical Copyright Society Nigeria) for instance, is a collective management organization in Nigeria responsible for the licensing and collection of royalties in relation to compositions and recorded music in Nigeria, that have been publicly performed, broadcasted or made available online. 

Copyright owners have to register as members to enjoy such representation and benefits. It is free to join MCSN.

 

There are numerous PROs in today's music industry but we will be looking at the top 3, namely; (i) BMI,  (ii) ASCAP, (iii) SESAC

 

BMI- Broadcast Music, Inc is a PRO in the United States of America. It collects license fees from businesses that use music registered with it, thus entitling those businesses to play or sync any of the songs in their repertoire. On a quarterly basis, BMI distributes the money to songwriters, composers, and music publishers as royalties to those members whose works have been performed. The minimum withdrawal amount for BMI is $2 if by direct deposit and $250 by check (unless it's the last quarter of the year, in which case the minimum is $25 by check). This means that for the quarterly royalty payment to be possible, the copyright owner must have accrued at least $2 or $250 or $25 (as the case may be) in royalties. 

Songwriters can join BMI for free, whereas publishers must pay $150, and companies are charged $250. 

 

ASCAP- Launched in 1914, the American Society for Composers, Authors and Publishers is the oldest PRO.  ASCAP is owned by its members, who pay a one-time joining fee of $50 and no annual dues. 

They carry out the same functions as BMI. The minimum withdrawal amount for ASCAP is $100. If you choose to receive physical checks and earn under the $100th threshold in a given distribution, ASCAP will apply the amount you earned to a future distribution, and will issue a check once at least $100 in royalties have accumulated.

 

SESAC- SESAC is the only for-profit private company among the "Big Three" PROs. 

SESAC pays its members quarterly royalty checks exactly like BMI and ASCAP, but the  members of SESAC have the option to receive monthly radio royalty payments as well.

Another major difference is SESAC is not open to just anyone. To gain membership, artists are invited to join. There is no cost to join SESAC.

There are varieties of PROs to choose from depending on what exactly a business or artist is looking out for.         Some of these PROs include; 

  1. AMRA (American Music Rights Association)
  2. JASRAC (Japanese Society for Rights of Authors, Composers and Publishers)
  3. IPRS (Indian Performing Rights Society)
  4. PRS for Music 

Joining a PRO as a publisher,        songwriter or author is necessary in the long run. This means you get full compensation for the use of your work, at all times.                                          For professional advice on what PRO to join, it is advisable to reach out to a right management company for guidance.