Copyright Office Launches Investigation Into PRO Transparency Following Congressional Concerns
The U.S. Copyright Office has launched an official inquiry into performing rights organizations (PROs) following concerns raised by Congress members about transparency and licensing practices.
The inquiry responds to a letter from Representatives Scott Fitzgerald, Jim Jordan, and Darrell Issa, who asked Register of Copyrights Shira Perlmutter to examine current PRO licensing fee practices.
Copyright Office building exterior daytime
Key concerns include:
- The proliferation of PROs beyond ASCAP and BMI, including GMR, SESAC, and AllTrack
- Increased costs and legal risks for small businesses, particularly bars and restaurants
- Accuracy of royalty calculations and distributions, especially for independent artists
- Transparency in performance tracking and compensation
The current U.S. system relies heavily on estimates and extrapolations for non-digital public performances, unlike more advanced tracking methods used elsewhere. For example, in Europe, Audoo's Audio Meter device provides accurate music usage data by plugging into standard outlets.
Important Dates:
- Initial public comments due: April 11th
- Follow-up responses due: May 27th
The MIC Coalition, representing organizations like the National Restaurant Association and National Association of Broadcasters, has endorsed the inquiry, calling for "much-needed improvements" to create a more efficient and fair music licensing system.
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