MUSICAL PERFORMANCE & PERFORMING RIGHTS ORGANISATION
There are two bundles of rights in every song – the sound recording and the musical works (underlying composition). These rights are protected under copyright laws and give the owners of such rights certain exclusive rights, such as the right of performance, distribution, reproduction etc. These owners can then trade with such exclusive rights as they wish, allowing others to enjoy their exclusive rights. This is done through
selling these rights or licensing them to others to be used on agreed terms.
One of such exclusive rights is the right to public performance. This right is exploited whenever the music is performed in public, either directly or indirectly. Public performance is direct where it is performed before a live audience, such as in a theatre, concert, or live show. Public performance is indirect where it is done through any device or process, such as digital means, e.g. playing from a phone, streaming, television shows, or
background music in restaurants or elevators etc. A songwriter or musician can’t track every public performance use of his musical work. Performing Right Organisations (PROs) such as PRS, ASCAP, COSON, MCSK, SAMPRO etc., exist to license and collect revenue from such use
of the musical work copyright. They can track and monetise the use of your music throughout the world, using many datasets, unique codes and identifiers, which an individual music creator will not be able to do or have access to. These PROs grant licenses to public music users, such as radios, television stations, concert venues, restaurants, hotels, etc., to publicly use the music of the members of such PROs. The PROs then share this money with their members, based on the sharing formula of the PROs.
Music creators need to be signed to a PRO, as there is no way they can collect revenue from users of their music. To collect revenue
without being signed to a PRO, such music creators will have to track every place where their music is being used, note the number of times the song they have rights in have been played, and negotiate a fee with the users. As stated above, the users are wide and varying. Radio stations, both online and physical, are examples of such users as they play music. A songwriter or musician cannot go to every radio station and demand for
payment. The same applies to televisions, concert venues, and shops where music is played all over, both at home and abroad. It is for this reason that signing up with a PRO is essential. They can track, negotiate, and license on behalf of the music creators.
They also make the process easier for both the music creator and users of music by granting blanket licenses, which gives the user access to the PROs music repertoire, and they can pay out to the music creator based on the usage of the music. A music creator should investigate and consult a music expert on the best PRO to join. This is necessary as the PRO you sign to determines how well your work is exploited and the revenue you collect. Also, as PROs are spread far and wide, it is best to be signed to one where your work is being heavily exploited.
Although most PROs have reciprocal agreements with other PROs worldwide, the money generated from these various regions will be split between both PROs. The terms and conditions of such PRO should be considered. For example, most PROs, as a rule, do not pay out to the user during the accounting/payment period, except such user’s work has generated above $100. Lastly, some PROs, such as COSON, distribute the revenues generated, i.e. everyone gets the same amount of money from the revenue generated irrespective of use. Whilst
this practice is not the best; some CMOs still practise this as they do not have the technology to determine which and how the
various users used each work.
MUSICAL PERFORMANCE & PERFORMING RIGHTS ORGANISATION
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