Copyright Office Launches Investigation Into PRO Transparency Following Congressional Pressure
The U.S. Copyright Office has launched an official inquiry into performing rights organizations (PROs) following congressional concerns about transparency in public performance licensing and royalty distribution.
The inquiry, announced from the James Madison Memorial Building in Washington, D.C., comes in response to a letter from Representatives Scott Fitzgerald, Jim Jordan, and Darrell Issa to Register of Copyrights Shira Perlmutter.
Copyright Office building exterior daytime
Key Areas of Investigation:
- PRO Proliferation Concerns:
- Growing number of PROs beyond ASCAP and BMI
- New players include GMR, SESAC, and AllTrack
- Increased financial burden on small businesses
- Higher risk of infringement allegations
- Royalty Distribution Issues:
- Accuracy of compensation for independent artists
- Transparency in payment calculations
- Disparity between major and minor publishers
- Need for improved tracking methods
Current Challenges:
- Limited accuracy in non-digital performance tracking
- Reliance on estimates and extrapolations
- Complexity of licensing system for businesses
- Lack of standardized measurement tools
The MIC Coalition, representing organizations including the National Restaurant Association and National Association of Broadcasters, has expressed support for the inquiry, emphasizing the need for increased transparency and competition in music licensing.
Timeline for Public Input:
- Initial comments due: April 11th
- Follow-up responses due: May 27th
The inquiry aims to address growing concerns about licensing efficiency, royalty accuracy, and the overall sustainability of the current public performance licensing system.
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