There is a conversation currently taking place on Capitol Hill that requires your voice and perspective as a music creator or copyright owner.
It started when music licensees approached members of Congress with concerns about new entrants into the PRO space and how PROs pay out royalties. Not surprisingly, their letter focused solely on the perspective of music licensees and failed to consider you -- the songwriters, composers and music publishers who earn their living from the public performance royalties collected by PROs.
We believe the goal of these licensees is not to question how the marketplace functions or call attention to new PROs who have actually gained very little traction in the industry, but ultimately to pay you less for your creative work. Unfortunately, this is not new. Licensees and their lobbying organizations have been making false and misleading arguments like these with that very goal in mind for years. And as we always have, BMI will continue to advocate tirelessly on your behalf to stop that from happening.
This outreach to Congress has sparked action at the U.S. Copyright Office, which has issued a request for comments to stakeholders in our industry about how the PRO marketplace is working. It is critical that the Copyright Office hear from you. We’ve prepared a letter that addresses the full perspective of the issues raised and states clearly the intention of these licensees to pay you less for your music. We’re asking you to add your signature to let Congress know the impact this could have on you and the need to safeguard your rights and royalties.
BMI is working actively with our partners in the industry and on the Hill to ensure your perspective is front and center in all discussions, and together, our voice will be amplified in this important debate.
Thank you in advance for your support. Every voice counts.
February 11, 2025
Ms. Shira Perlmutter
Register of Copyrights
United States Copyright Office
Washington, D.C. 20559-6000
Dear Register Perlmutter:
We are writing in response to the Notice of Inquiry (NOI) published by the U.S. Copyright Office in the Federal Register on February 10, 2025, titled “Issues Related to Performing Rights Organizations.” We recognize this inquiry was initiated in response to a September 2024 letter sent to you by three Members of Congress. We strongly believe that letter focused solely on the perspective of music licensees and failed to consider our perspective as songwriters, composers and music publishers who earn our living from the public performance royalties collected by PROs. We are similarly disappointed that the questions posed in your inquiry also focus on music users, and not music creators. This is concerning because it is apparent that the Congressional letter’s intention was to question the efficacy of the music licensing marketplace in order to further a specific agenda of additional regulation of PROs and ultimately enable licensees to pay less to music creators and copyright owners for the use of our creative work.
Unfortunately, this is not new. Licensees and their lobbying organizations have been making the same false and misleading arguments with that very goal in mind for years. Now they are using the emergence of new PROs—who have gained very little traction in acquiring any share of repertoire actually used by licensees—as the centerpiece of their renewed push for regulation.
We know that new entrants are evidence of a competitive, vibrant and functional marketplace. Competition, particularly for creators, is positive. Moreover, we appreciate that it is critical for licensees to understand who represents the music they use in their businesses and—as representatives of our repertoire—for PROs to be clear about their catalogs. To this end, BMI and ASCAP have already delivered an industry solution called Songview, which provides transparency around copyright ownership. If other organizations are not as committed to transparency, there are already state laws across the country governing PROs that protect consumers from deceptive business practices. We don’t believe new regulation or oversight on us as creators or on BMI, the PRO that collects and pays our royalties, is required. What is required is simply enforcement of existing laws and regulations.
In today’s music industry, streaming services and the fractions of pennies they pay per-stream have made it even more difficult for us to earn a living. We rely on public performance royalties for our livelihoods now more than ever. This is why we also noted with interest the request for the Office to evaluate the collection and distribution of general licensing dollars. As you know, this is a broad category that includes, among others, bars, restaurants, and other smaller venues with live performances, and it is well known that music usage in this category is the most difficult to capture. Moreover, every dollar PROs spend tracking data means dollars coming out of our royalty pool.
Again, we believe this is a false issue raised by music users for the specific purpose of reducing license fees. However, even accepting this concern as sincere, it is clear that the solution to this purported problem should not fall on us and our PROs. The obligation of music users to pay for the right of public performance exists regardless of and without relation to the distribution practices of PROs. If licensees truly are concerned about royalty distribution, we and our PRO would welcome additional reporting from them to better capture their usage of our music in their businesses.
Lastly, regarding live concert venues, it is standard practice that those licensees deduct public performance licensing fees straight out of the pockets of the artists performing at their venues (artists who are very often songwriters). We believe it would be useful to know how widespread this practice is, and whether the total fees they deduct exceed what they pay for their public performance licenses, if and when a venue has actually even taken the necessary licenses.
Importantly, songwriters are the ultimate small business owners who work hard at their profession and deserve fair compensation. We are already the most heavily regulated segment of the music industry. PROs exist to ensure we can continue to earn a living through our craft and keep creating the music that is both a powerful driver of the U.S. economy and widely enjoyed around the world.
Thank you for your attention to our thoughts on this matter.
Sincerely,
