What are CMOs?
Collective Management Organizations (CMOs) are organizations that act collectively on behalf of the A person or company that has Intellectual Property Rights in a musical work, performance or sound recording they represent. They can represent various The controls creators or rights holders have over what they have created or produced and over their identity and image. and rights holders in many creative sectors, such as music, audiovisual, book and journal publishing, and the visual arts. CMOs are usually non-profit organizations governed by the rules agreed to by their members, any applicable National laws that protect creators' and other rights holders' moral and economic rights in musical works, performances, and sound recordings., and other laws and regulations.
CMOs To manage music-related rights and royalties on behalf of rights holders. the rights of rights holders, A form of permission given to use copyrighted material, such as a musical work or sound recording, under certain conditions and usually for a fee. the use of their members' creative works, and collect any income owed to rights holders. CMOs can also have Agreements between organizations such as Collective Management Organizations (CMOs) that allow them to represent other rights holders represented by other CMOs in other countries. between them to represent rights holders represented by other CMOs in their countries.
In the music industry, CMOs administer the rights of rights holders for the use of their An original musical composition with or without lyrics. and Typically, the recorded performance of a musical work protected as a phonogram under copyright law.. There are CMOs that represent 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. and those that represent In the context of music, a creator playing a musical work live or on a sound recording., A company that invests in, manufactures, distributes, promotes, and monetizes sound recordings on behalf of the artist., or both. Some CMOs represent all music industry rights holders, or even rights holders from other creative industries.
Depending on the type of rights they represent, CMOs can also be known as an Authors' Society, Society, Collective, Collecting Society, Performing Rights Organizations (PROs), or Mechanical Rights Organizations (MROs).
CMOs are territory-specific, and countries may have one or a number of CMOs for Anyone who contributes to creating or performing a musical work, a live performance, or a sound recording. to choose from. While most songwriters and performers become members of their local CMO, some join and assign some of their rights to a foreign CMO.
You can find the list of The International Confederation of Societies of Authors and Composers. member CMOs here and The “Bureau international des sociétés gerant les droits d’enregistrement et de reproduction mécanique”. The international organization representing mechanical rights societies. member CMOs here, representing songwriters, other authors, and publishers.
You can find the list of Societies' Council for the Collective Management of Performers' Rights: the international association for the development of the practical cooperation between performers' collective management organizations. member CMOs representing artists and other performers here.
You can find the list of International Federation of the Phonographic Industry: the organization that represents the interests of the recording industry worldwide. affiliate CMOs representing labels here.
Note that there are more CMOs administering rights in musical works and sound recordings that are not members of CISAC, SCAPR, or IFPI. You can find out about them by contacting the local A government agency responsible for regulating and administering copyright, including the enforcement of copyright laws..
For more information, read WIPO’s Good Practice Toolkit for Collective Management Organizations.
What does a CMO do?
The primary function of all CMOs in the music industry is to license the use of musical works or sound recordings and to collect and distribute Money paid for the right to use a musical work, performance, or sound recording, typically, but not always, in the form of recurring payments. for the use of those on behalf of the members they represent, but there's more to it than that.
Licensing
Licensing is the process of granting permission for the use of copyrighted material. A CMO will negotiate licensing agreements on behalf of their members with people, companies, and organizations that want to use their musical works or sound recordings, such as broadcasters, streaming services, and live venues. The CMO will outline the terms of the license, including the territory, duration and the license fees that must be paid. CMOs often offer Persons and organizations that engage in commercial or public use of musical works and sound recordings, for example, DSPs, radio and TV stations, and retail businesses. a A form of licensing that allows unlimited uses of a repertoire of musical works or sound recordings under certain conditions for all the musical works in the CMO's A collection of musical works or sound recordings. in exchange for a fee.
CMOs can licence:
● Musical works to sound recording producers and concert organizers
● Musical works or sound recordings to TV and radio broadcasters, public venues such as bars, hotels, shops, clubs, and DSPs for both linear and Streaming services that allow users to choose the music or videos they want to listen to or view..
CMOs may also collect and pay out royalties for uses of musical works and sound recordings that do not involve licensing, such as the compensation for Copying of musical works and sound recordings for private purposes. in countries where this exists.
Visit our topics on Music Creators' Rights, Rights Transfer and Licensing, and Scope of Protection to learn more.
Collecting and Distributing Royalties
When a The term "song" does not have a legal definition. It is frequently used to mean "musical work” – the composition and lyrics (if any) created by songwriters and composers. However, it could also refer to a “sound recording” (a specific recording of a musical work), or a “performance” (a live performance of a musical work). is played on stage, on the radio, performed in public, distributed online or as a Tangible items such as CDs, vinyl records, and cassettes., or used in a film or TV show, the CMO tracks and collects the royalties owed to the songwriters, composers, performers, music publishers or record labels who have the rights in the musical work or sound recording the CMO represents. The CMO then distributes these royalties to the rights holders based on the In the context of music, it is used to describe the use of a musical work or sound recording, for example, the type and number of streams or radio plays..
We explain more about royalties in our Getting Credited and Paid topic.
Legal Representation
In special cases, a CMO may also provide legal advice and representation to its members in claims of The use of a protected musical work, performance, or sound recording without the permission of the rights holders or a license from a CMO in cases where such permission or license is required by copyright law. or disputes.
Social benefits, cultural funds, and advocacy
Most CMOs also provide additional services for their members, including , Money used to promote culture by providing social, cultural, and educational services for the benefit and welfare of creators. and advocacy.
For more information, read WIPO’s Good Practice Toolkit for Collective Management Organizations.
Why should music creators join a CMO?
This will vary from creator to creator based on the creative role they play, the ownership they have of musical works, performances and sound recordings and where they are being used. CMOs exist in situations where it would be impossible or impractical for rights holders to do this by themselves. Key benefits of joining a CMO include:
Only if you join a CMO will you receive royalties for uses of your musical works, performances, or sound recordings that are managed collectively by other CMOs around the world.
Once you become a member of a CMO you and your musical works or sound recordings will be uniquely identified. The use of your musical works or sound recordings will be tracked, and you will be compensated, so you will earn royalties for those uses.
Your CMO will collect and pay you royalties for uses in its country, as well as for uses abroad, through representation agreements with other CMOs in their countries or through A licensing method that gives permission, in one single license, to use copyrighted material, such as a musical work or sound recording, in more than one country..
What are the different types of CMOs?
In the music industry, you will find various types of CMOs, including Performing Rights Organization: a type of Collective Management Organization that administers rights and collects royalties on behalf of songwriters and music publishers when their musical works are publicly performed or broadcast. or Mechanical Rights Organization: an organization that represents songwriters and music publishers and collects mechanical rights royalties on their behalf.. The main difference between them is the type of rights they administer, license, and collect royalties for.
Some of the different kinds of CMOs include:
Societies: representing songwriters and music publishers for various rights
MROs (Mechanical Rights Organizations): managing songwriters' and music publishers' reproduction and distribution rights
PROs (Performing Rights Organizations): representing and managing performing rights for songwriters and music publishers,
MLCs (Music Licensing Companies): representing the right of record producers and music performers (The US-based Mechanical Licensing Collective is an MRO, not an MLC)
PMOs (Performers' Collective Management Organizations): representing performers and their performing rights
RROs (Reproduction Rights Organizations): they manage reproduction rights and represent mostly book and journal authors and publishers, but also authors and publishers of sheet music.
Copyright bureaus: in some countries (mainly Francophone Africa), the local A government agency responsible for regulating and administering copyright, including the enforcement of copyright laws. also acts as the country's unique CMO representing all rights holders, including songwriters, music publishers, performers, and The person or company taking the responsibility for making a sound recording..
Most music CMOs are also members or affiliates of an international umbrella organization, which sets professional rules and standards, facilitates cross-border collaboration among the CMOs, and advocates on their behalf:
The difference between CMOs IMEs/RMEs, and SPVs
New alternatives to traditional CMOs have emerged, known as IME: private organizations, usually for-profit, controlled by shareholders, and typically focused on specific aspects of rights management., Organizations focused on specific aspects of rights management. They may work with others to collectively manage larger portfolios of rights. and SPVs: entities usually set up in partnership between a CMO and a music publisher, established to license and administer the publisher's musical works in specific circumstances..
While CMOs are usually not-for-profit and can be owned or controlled by their A person or company that has Intellectual Property Rights in a musical work, performance or sound recording members, Independent Management Entities (IMEs) or Rights Management Entities (RMEs) are private organizations, usually for-profit and controlled by shareholders instead of rights holders. Typically, they focus on specific aspects of General activities undertaken to administer, preside over or manage rights and may work with others to collectively manage larger portfolios of rights.
Special Purpose Vehicles (SPVs) are entities usually set up in partnership between a CMO and a music publisher. They are typically established to administer and license the music publisher's musical works to Digital Service Provider: an online platform that provides streaming or download services to consumers..
Explore our topics on Music Creators’ Rights, Rights Transfer and Licensing, and Scope of Protection for more information.
The difference between CMOs and music publishers
Music publishers can be members of or work very closely with CMOs; both have a role in administering rights and The process of granting permission to use copyrighted material, such as a musical work or sound recording., but music publishers, in addition to managing and protecting rights, play a more active role in the growth and success of their songwriters’ careers. As a creator, you may benefit from working with both a CMO and a music publisher.
Visit our page on Music Publishers to learn more.
Illustration credit: Martin Fabricius Rasmussen