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How do performance rights organizations ensure fair compensation for artists and songwriters?

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If you are an artist or a songwriter, you probably want to get paid for your work when it is played on radio, TV, streaming services, or live venues. But how do you track and collect royalties from all these sources? That's where performance rights organizations (PROs) come in. PROs are entities that license, monitor, and distribute royalties for the public performance of musical works. In this article, you will learn how PROs operate, why they are important, and what you need to know to join one.

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Elia Mssawir

Entertainment Strategist | Music Industry Expert (MENA) | Building Creative Companies | Driving Innovation and Growth |…

1 What are PROs and what do they do?

PROs are organizations that represent the rights of songwriters and publishers, who are the owners of the musical compositions. PROs negotiate with music users, such as broadcasters, streaming platforms, and venues, to set the fees for using their members' works. PROs also track and collect these fees, and distribute them to their members as royalties. PROs also advocate for the interests of their members and lobby for fair copyright laws.

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Geovane Bento

Top Voice Linkedin | Diretor Artístico da NOAR Produ??es | Coolhunter | Estrategista Fonográfico | Membro da Academia do Grammy Latino | Especialista em Diferencia??o Profissional | Autor do Livro “Construído Estrelas”.
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To ensure fair compensation for artists and composers, follow these steps: Register your songs with a copyright organization, affiliate with a PRO, register your works, monitor their usage, promote your music, license it properly, let PROs collect royalties, and maintain accurate records. Consult a lawyer for complex issues. Be aware of local policies.

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Elia Mssawir

Entertainment Strategist | Music Industry Expert (MENA) | Building Creative Companies | Driving Innovation and Growth | Investor
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Performance Rights Organizations, play a crucial role in securing fair compensation for artists and songwriters. They act as intermediaries between creators and those who use their music. PROs collect and distribute royalties whenever a song is performed publicly, be it on radio, TV, live venues, or digital platforms. They ensure artists receive compensation for their creative work by tracking and licensing the public use of their music. In essence, PROs serve as advocates for musicians, ensuring they get paid when their work is enjoyed by audiences worldwide. Please note that most major PRO's are regulated by governments or simply registered as NGOs.

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2 How do PROs track and collect royalties?

PROs use various methods and technologies to track and collect royalties from music users, such as surveys and sampling, census reporting, digital monitoring, and live performance reporting. Surveys and sampling allow PROs to estimate the frequency and duration of music usage across different media and regions. Census reporting requires music users to report every song they play, using metadata and identifiers like ISRCs and ISWCs. Digital monitoring involves using software and hardware tools to detect and identify music usage online and offline, with audio fingerprinting and watermarking techniques. Lastly, live performance reporting relies on PROs members to report their live performances through online forms, mobile apps, or set lists.

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3 How do PROs distribute royalties?

PROs distribute royalties to their members based on various criteria and formulas, depending on the type and source of music usage. Performance category, performance period, performance share, and performance pool are all taken into account when assigning royalties. Performance category assigns different weights and values to different types of music usage, such as radio, TV, streaming, or live. Performance period refers to the length of time royalties are paid for, usually quarterly or annually. Performance share determines how much of the royalties goes to the songwriter and how much goes to the publisher, usually 50/50 unless otherwise agreed. Performance pool allocates a portion of the total royalties to each performance category, which is then divided among members based on their relative share of music usage.

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Elia Mssawir

Entertainment Strategist | Music Industry Expert (MENA) | Building Creative Companies | Driving Innovation and Growth | Investor
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PROs distribute royalties by collecting fees from businesses that use music, like radio stations or venues. They then pool these funds and use advanced tracking systems to identify which songs were played. Based on this data, they calculate each artist's share and distribute the money accordingly. This ensures that musicians are fairly compensated for the public use of their music across various platforms. PROs such as PRS for Music in the UK are registered as NGO's, therefore they share 100% of royalties with members.

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4 How do you join a PRO?

If you want to join a PRO, you must meet some basic requirements and follow certain steps. Eligibility requires you to be a songwriter or publisher, or both, and have at least one original musical work that has been or will be publicly performed. Additionally, you must fill out an application form with personal and professional information, such as your name, address, tax ID, and affiliation. Furthermore, you must pay a one-time or annual fee to join the PRO depending on the type of membership. Lastly, you need to register your musical works with the PRO, either online or offline, while providing details such as the title, writers, publishers, and splits.

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5 What are the main PROs in the US and abroad?

There are many PROs around the world, but some of the most prominent ones in the US and abroad are ASCAP, BMI, SESAC, GMR, PRS, and SOCAN. Established in 1914, ASCAP is the oldest and largest PRO in the US, with over 800,000 members and 11.5 million works. Broadcast Music Inc., founded in 1939, is the second largest PRO in the US with 900,000 members and 17 million works. The Society of European Stage Authors and Composers (SESAC), established in 1930, is the smallest and most selective PRO in the US, with 30,000 members and 1 million works. Global Music Rights (GMR), founded in 2013, is the newest and most exclusive PRO in the US with 100 members and 20,000 works. The Performing Right Society (PRS), founded in 1914, is the main PRO in the UK with 145,000 members and 14 million works. Lastly, The Society of Composers, Authors and Music Publishers of Canada (SOCAN) was established in 1990 as the main PRO in Canada boasting 160,000 members and 22 million works.

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Elia Mssawir

Entertainment Strategist | Music Industry Expert (MENA) | Building Creative Companies | Driving Innovation and Growth | Investor
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In the US, prominent PROs include ASCAP, BMI, and SESAC. These organizations manage the performance rights for musicians domestically. Internationally, there are organizations like PRS for Music (UK), SOCAN (Canada), and GEMA (Germany). These global counterparts collaborate through reciprocal agreements, ensuring artists receive fair compensation when their music is played across borders. This network of PROs helps streamline the process of collecting and distributing royalties worldwide, benefiting artists and songwriters on a global scale.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do performance rights organizations ensure fair compensation for artists and songwriters?

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1 What are PROs and what do they do?

2 How do PROs track and collect royalties?

3 How do PROs distribute royalties?

4 How do you join a PRO?

5 What are the main PROs in the US and abroad?

6 Here’s what else to consider

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