U.S. Congress members are raising concerns over the performance of performing rights organisations (PROs) in the distribution of music royalties. The House Judiciary Committee has sent a letter to the U.S. Copyright Office highlighting inefficiencies that could lead to inequities in how royalties are allocated to independent artists compared to their more widely recognized counterparts. This issue has been a long-standing one within the industry, prompting entrepreneurial solutions such as DVS1’s now-defunct Aslice.
According to the letter, there is difficulty in assessing the accuracy of compensation for lesser-known artists and smaller publishers. The lawmakers suggested that the Copyright Office undertake a thorough examination of how PROs monitor music usage and review discrepancies in royalty distribution. They also expressed concern about the proliferation of PROs and how this might inflate licensing costs while increasing the potential for infringement and litigation.
Established players such as BMI, ASCAP, and SESAC dominate the performance royalty landscape in the United States, but newer entities like Global Music Rights and AllTrack have emerged since 2013 and 2017, respectively.
The committee's recommendations aim to improve the current system and ensure fair compensation across the industry. For more information on PROs, readers are encouraged to visit the Resident Advisor newsletter, which addresses these significant changes in greater detail.