On September 18, 2024, The House Judiciary Committee sent a significant letter to the Copyright Office regarding the transparency and fairness in the distribution of music royalties by performing rights organizations (PROs). The committee expressed concerns primarily centered on two key issues: the lack of transparency in royalty allocation and the proliferation of PROs in the United States.
In the letter obtained by Billboard, congress members highlighted the difficulties independent artists and lesser-known publishers face in receiving equitable compensation compared to their more prominent counterparts. They noted that current public data makes it challenging to ascertain the effectiveness with which PROs allocate licensing revenue.
Furthermore, the letter urged the Copyright Office to evaluate how these organizations collect data from live venues and licensees to identify any discrepancies in the distribution process, aiming to discover potential gaps and technological improvements that could enhance system efficiency.
Another critical issue highlighted in the correspondence is the increasing number of PROs in the U.S., which contrasts with the more streamlined systems found in many other countries. In the U.S., major players like ASCAP and BMI coexist with emerging entities such as SESAC and Global Music Rights. This proliferation adds to the complexity and costs of licensing, potentially leading to confusion and legal risks for licensees, such as bars and restaurants, who report receiving multiple royalty demands from various organizations.
While the Copyright Office currently cannot enforce immediate changes, this letter serves as a platform to draw attention to these pressing issues that have been voiced by both industry professionals and artists alike over the years. Responses from the Copyright Office indicate they are currently reviewing the committee's concerns thoroughly.
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