PRO (Performing Rights Organization)

A Performing Rights Organization (PRO) is an organization that collects royalties on behalf of songwriters, composers, lyricists, and music publishers when their musical works are publicly performed or broadcast. PROs act as an intermediary between music creators and businesses/entities who want to play or perform copyrighted songs and compositions.

The primary roles of a PRO are:

• Collecting royalties – PROs issue licenses to music users like radio stations, TV networks, restaurants, retail stores, concert venues, etc. to play the songs in their catalog. The PRO then tracks public performances of those songs to determine royalty amounts owed to writers and publishers.
• Issuing licenses – PROs negotiate licenses with businesses to allow legal public performance of the songs in their catalog. Common licenses include blanket licenses for continual use and per-program licenses for one-time use.
• Monitoring usage – Through various reporting means like broadcast logs and setlists, PROs keep track of when and how often songs are publicly played. However, obtaining complete and accurate usage data poses challenges.
• Distributing royalties – Based on usage monitoring, PROs pay out royalties to registered writers and publishers whose works have been publicly performed. Distribution frequency and payment methods vary across PROs.

PROs differ from Collective Management Organizations (CMOs) and Mechanical Rights Organizations (MROs) in the specific rights they represent – PROs solely focus on public performance rights. CMOs represent a broader range of copyrights, while MROs collect royalties when compositions are reproduced and distributed.

The main types of royalties collected by PROs are public performance royalties generated when a song is played on radio, TV, in retail stores, restaurants, and any other public-facing business. Some PROs may also collect digital performance royalties from online/streaming services.

Core Functions of a PRO

Performing Rights Organizations have three primary functions – issuing licenses, monitoring usage, and distributing royalties. These core duties allow PROs to facilitate legal public performances of songs while compensating copyright holders. Let’s explore each function in more detail:

Issuing Licenses

One of the main jobs of a PRO is granting licenses to businesses and entities who want legal permission to publicly play the songs represented in the PRO’s catalog. There are two common types of licenses:

• Blanket licenses – These give blanket permission to play any and all of the songs controlled by the PRO. Blanket licenses are commonly issued to radio stations, TV networks, live venues, bars, restaurants, retail stores, and other establishments that continually play music. Fees are typically based on criteria like the entity’s revenue.
• Individual licenses – These allow the licensee to publicly perform a specific song or set of songs. Synchronization licenses that allow music to be used in films, TV shows, ads, and video games are a common example. Rates are usually negotiated on a case-by-case basis.

PROs require thorough reporting from licensees on which songs were performed and how often. License terms dictate the exact reporting process, which aims to support accurate royalty distribution. Common reporting methods include broadcast logs, cue sheets, and set lists.

By licensing establishments to legally perform songs publicly, PROs empower businesses to use music to enhance their environments while ensuring composers get their due compensation.

Monitoring Usage

In order to accurately compensate copyright holders, PROs must closely monitor exactly when and how often the songs in their catalog are publicly performed. This is done through detailed usage reporting required from licensees.

Common reporting methods include:

• Song reporting logs – Radio stations, streaming services, and other music platforms submit logs listing every song they played over a certain period, typically on a monthly or quarterly basis.
• Cue sheets – For sync licenses in TV, film or ads, cue sheets detail the exact timings of each composition used in the production.
• Set lists – Live venues provide the PRO with set lists indicating all the songs performed during a show or event.

PROs may also utilize airplay monitoring services to independently track when songs receive radio play or TV network performances. Companies like BDSradio and Soundcharts provide valuable data to complement licensee reporting.

However, challenges remain in getting complete and fully accurate usage data from licensees. Reporting can be incomplete, irregular, or contain errors and outdated metadata. As a result, PROs never have 100% visibility into all public performances of their catalog. Usage monitoring is an ongoing effort to maximize available data.

By combining direct licensee reporting with independent airplay tracking, PROs assemble the clearest possible picture of when and how each song they represent gets publicly performed. This data fuels the royalty calculations that determine how much money songwriters and publishers should be paid.

Distributing Royalties

The culmination of a PRO’s efforts is the distribution of collected royalties to registered rights holders. Payout timing and methods vary between PROs, but the underlying process is similar:

• Calculating royalties owed – Based on the usage data gathered through monitoring, PROs determine the public performance royalty amounts owed to each songwriter, composer, and publisher. More airplay equals higher royalties. Formulas determine percentages owed to each party.
• International distribution – PROs have reciprocal agreements allowing them to collect international royalties on behalf of members. For example, ASCAP may collect royalties when a U.S. song gets aired on a French radio station, then transfer the royalties back to ASCAP for payment to the American writer.
• Challenges in maximizing payments – Despite best efforts, PROs cannot achieve 100% accuracy in royalty distribution. Incomplete usage data, incorrect songwriter splits, and issues translating airplay into royalties can all lead to underpayment of owed royalties. Publishers and administrators must vigilantly audit statements and claim all entitled payments.

PROs aim to compensate composers and publishers fully and fairly for the public use of their creative works. But the complexities of usage tracking and limitations of data mean royalties do not always meet their full potential. Rights holders must take an active role in evaluating distributions to maximize their earnings.

Major PROs Around the World

While the roles and functions of Performing Rights Organizations are fundamentally the same worldwide, each region has its own leading PROs that songwriters, composers, and publishers affiliate with. Here are some of the top and most influential PROs from key music markets globally:

ASCAP (USA)

• Founded in 1914, over 800,000 members
• Extensive catalog of over 11.5 million works
• Notable members: Taylor Swift, Demi Lovato, Mariah Carey, Lil Baby
• Distinguishing factors: Oldest U.S. PRO, writer-focused governance
• Other roles: Workshops, showcases, healthcare benefits for members

BMI (USA)

• Launched in 1939, over 1 million members
• Catalog of over 15 million musical works
• Notable members: Willie Nelson, Lady Gaga, Ed Sheeran, Lil Wayne
• Distinguishing factors: Largest U.S. PRO, open door policy
• Other roles: Stages showcases, songwriting camps, industry panels

SESAC (USA)

• Founded 1930, invitation-only with 30,000 members
• High-profile but selective catalog
• Notable members: Bob Dylan, Neil Diamond, Adele
• Distinguishing factors: For-profit status, acquisition of HFA mechanical rights agency
• Other roles: Invite-only provides personalized service for top artists

SOCAN (Canada)

• Established in 1990, over 150,000 members
• Key leadership: CEO Jennifer Brown
• Distinguishing factors: Leading PRO serving English Canada

APRA AMCOS (Australia)

• 1997 merger, now over 100,000 members
• Catalog size: 15 million works
• Distinguishing factors: Amalgamation united two leading Australian PROs

SACEM (France)

• Founded in 1851, the first PRO ever created
• Over 160,000 songwriter and publisher members
• Notable members: Daft Punk, David Guetta, Jean-Michel Jarre
• Distinguishing factors: Sole organization for French public performance rights

JASRAC (Japan)

• Founded in 1939, over 5 million works represented
• Controls 98% of the Japanese market
• Notable members: Yoshiki, Masashi Sada, Ayumi Hamasaki
• Distinguishing factors: Massive revenue from karaoke licensing
• Other roles: Cultural promotion, anti-piracy efforts

MCPS-PRS Alliance (UK)

• Merger completed in 1997
• Over 160,000 songwriter and publisher members
• Catalog size: 15 million works
• Key leadership: Andrea Czapary Martin, CEO
• Distinguishing factors: United two preeminent UK PROs into one

GEMA (Germany)

• Sole mandated PRO in Germany
• Over 70,000 composer, lyricist, and publisher members
• Catalog size: 70 million+ musical works
• Distinguishing factors: Monopoly PRO status in Germany
• Other roles: Prizes and grants for members

These leading PROs along with many others globally work to empower music creators to earn compensation for public enjoyment of their artistic works.

Pros and Cons of PROs

Performing Rights Organizations provide invaluable services but also have some drawbacks. Looking at the pros and cons allows music creators to make informed decisions about PRO affiliation.

Benefits

PROs offer a number of advantages:

• Ease of blanket licensing for businesses – Instead of approaching rights holders individually, companies can efficiently license public performance rights for millions of songs through a single PRO license. This simplicity enables more businesses to legally use music.
• Global royalty collection through reciprocity – PROs have agreements to collect international royalties on behalf of affiliated members, providing access to public performance income worldwide. Writers get royalties even from foreign radio play.
• Support services for songwriters and publishers – Many PROs offer workshops, showcases, discounts, healthcare benefits and more as extra value to members. Educational programs help creators hone their craft and business skills.

By providing convenient licensing, royalty collection reach, and educational resources, PROs deliver significant benefits to both music users and creators around the world. However, they also have some drawbacks, which we’ll explore next.

Criticisms

While PROs provide valuable services, they also face certain criticisms, including:

• Challenges in royalty distribution accuracy – With incomplete usage data, errors are inevitable in determining precise royalties owed. This can lead to underpayment of entitled royalties to rights holders.
• Lack of transparency – PRO formulas for allocating royalties can seem opaque. Some feel PROs should be more open about tracking and distribution processes.
• Licensing of incidental public performances – PRO licensing of businesses playing radio/TV music audibly but incidentally (e.g. in stores) is controversial. Some argue this essentially taxes businesses for promotional music use.
• Administrative inconsistencies – Collection and payment efficiency varies significantly across PROs. Some are much slower than others in registering works and distributing royalties.

While PROs provide ease of licensing for businesses and access to worldwide royalties for creators, they aren’t perfect. Distribution accuracy issues, transparency concerns, and licensing disagreements demonstrate areas for improvement in the PRO system.

How to Maximize Royalties with a PRO

While affiliation with a Performing Rights Organization is essential for creators, additional steps can help fully capitalize on public performance royalties:

• Choosing the right PRO – Research which PRO best suits your region and genre. ASCAP excels in pop/mainstream, while BMI is strong in country and Americana.
• Direct registration – Don’t rely solely on your publisher’s PRO registration. Register as a writer directly to access international collections governed by reciprocity.
• Distribution analysis – Regularly audit your royalty statements to claim proper payment. PRO data limitations lead to underpayment – you must identify and claim your owed earnings.
• Publishing administration – Complement your PRO affiliation with a publishing administrator who audits and pursues your global performance royalties.
• Airplay tracking – Use third-party airplay monitoring services to identify uses of your songs that PROs may have missed. Submit this data to maximize payouts.

The key is being proactive. While PROs provide convenient access to public performance royalties, you must take ownership of managing your rights and earnings to truly realize your royalty potential. Do your research, register directly, audit statements, and utilize available data to ensure proper PRO compensation.

The Importance of Understanding PROs as a Music Creator

As an artist, songwriter or composer, understanding the roles and operations of Performing Rights Organizations is incredibly important for your career. As demonstrated throughout this article, PROs have a major influence on the music industry and your potential to get paid.

In short, knowledge is power when it comes to Performing Rights Organizations. The more you educate yourself on their intricacies, the better you can leverage PRO systems for your benefit as a music creator. Take control of your copyrights and earn what you deserve from public performances.

FAQs about PROs (Performing Rights Organizations)

Performing Rights Organizations are complex entities with many intricacies. Music creators often have questions about the best ways to engage with PRO systems. Below are answers to some frequently asked questions about PROs: