Copyright Office Probes Music Rights Groups Chaos
Published Date: 2/10/2025
Notice
Summary
The U.S. Copyright Office is checking in on how music rights groups, called PROs, handle licensing and money sharing. This comes after more PROs popped up, making things tricky for songwriters and music users. If you want to share your thoughts, you’ve got until April 11, 2025, with replies due by May 27, 2025.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 5 costs, 0 mixed.
New PROs Sending Duplicate Royalty Demands
Bars, restaurants, stores, hotels, and music venues have reported receiving royalty demands from new performing rights organizations (PROs) that claim to represent songwriters and threaten litigation. The Congressional letter says the possibility of substantial statutory copyright damages can pose an "existential risk" for many small businesses, which may feel compelled to pay these additional demands on top of existing blanket licenses.
Fractional Licensing Means Multiple Licenses
When a song has multiple co‑owners who affiliate with different PROs, each PRO may only control a fractional share, so a venue or broadcaster may need licenses from multiple PROs to cover a single work. If a user does not obtain licenses that cover all fractional interests, it "may face infringement liability," creating extra administrative work and potential legal exposure.
Repertoire Data May Be Inaccurate or Limited
PRO repertoires and joint data platforms (like ASCAP/BMI's SONGVIEW) may contain inaccuracies or delayed updates because membership changes and third parties supply data. Some PROs disclaim guarantees about accuracy, but certain PROs say they will not sue those who rely in good faith (for example, SESAC provides a 45‑day grace period to obtain a license after a work is posted).
Lesser-Known Artists May Be Underpaid
Congressional correspondence and the Office note it is difficult to assess whether PROs distribute general licensing revenue efficiently, including whether lesser-known and independent artists and smaller publishers are being paid accurately compared to widely popular artists and major publishers. The Office is seeking information on how distribution practices might affect compensation for these creators.
Live-Show Tracking Favours Big Tours
Some PROs conduct a census of performances for the top‑grossing tours and festivals (the Office cites a census of the roughly 300 largest tours and selected venues), while smaller venues often rely on performers self‑reporting setlists. This means performances outside the top tours may be less consistently tracked for royalty payments.
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Key Dates
Department and Agencies
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