What is a Performing Rights Organization (PRO)?
PROs To manage music-related rights and royalties on behalf of rights holders. rights and collect Money paid for the right to use a musical work, performance, or sound recording, typically, but not always, in the form of recurring payments. on behalf of A person who makes an original contribution to the creation of a musical composition or lyrics. and A company that represents songwriters, supporting their career development, monetizing musical works, and protecting copyrights. when their An original musical composition with or without lyrics. are publicly performed or broadcast. Public performances can include playing a Typically, the recorded performance of a musical work protected as a phonogram under copyright law. of a musical work on TV or radio, in clubs and restaurants, on websites, or other music broadcasting systems. It also includes live performances.
For more details about this, visit our topics on Music Creators’ Rights, Rights Transfer and Licensing, and Scope of Protection.
Visit our page on Collective Management Organizations to learn more about different types of CMOs.
What do PROs do?
PROs perform a range of functions, the most important being:
The process of granting permission to use copyrighted material, such as a musical work or sound recording. the use of musical works, specifically the The right to play a musical work publicly, live or as a sound recording
Collecting royalties and A report that details the types and number of uses of a musical work or sound recording, for example, the number of streams or radio plays. from businesses and organizations that use musical works
Distributing those royalties to songwriters and music publishers
Administering rights
How do PROs work?
PROs work by licensing the public performance of musical works to businesses and organizations. When a business or organization wants to use these musical works, I.e., typically by playing the sound recording of the musical work in public, they must obtain a license and pay the PRO for the use.
PROs then distribute royalties to the songwriters and music publishers who own the rights in the musical works. The amount of royalty earned is typically based on how many times the musical work was played and the length of the performance. However, many variations can apply in different countries in different scenarios.
Most PROs are members of CISAC or can be found through the local A government agency responsible for regulating and administering copyright, including the enforcement of copyright laws..
Why are PROs important?
PROs are important because they help songwriters and music publishers get paid and To be publicly acknowledged for a contribution to the creation of a musical work, a live performance, or sound recording, for example, listing a songwriter's or performer's name. for the use of their musical works. They assign Unique alphanumeric codes used to identify creators, rights holders, musical works, and sound recordings., administer rights, and collect and pay royalties to songwriters and music publishers when their musical works are used.
Music publishers can work very closely with PROs; both have a role in administering rights and licensing, but they are not the same. Music publishers, in addition to managing and protecting rights, play a more active role in the growth and success of their songwriter's careers.
Visit our page on Music Publishers to learn more.
Image credit: Martin Fabricius Rasmussen