What is a Performing Rights Organization (PRO) and what do they do?
A Performing Rights Organization (PRO) is an entity that represents songwriters, composers, and music publishers in managing and licensing their performance rights. The primary role of a PRO is to ensure that creators receive compensation when their music is performed in public. Here are the key functions of a Performing Rights Organization:
- Licensing and Royalty Collection: PROs negotiate licenses with businesses and organizations that use music publicly, such as radio stations, television networks, concert venues, restaurants, and streaming services. These licenses grant permission to use the copyrighted music, and in return, the businesses pay licensing fees. The PROs collect these fees on behalf of their members.
- Royalty Distribution: After collecting licensing fees, PROs distribute royalties to their member songwriters, composers, and music publishers. The distribution is based on various factors, including the frequency and popularity of the performances, as well as the terms of the licensing agreements.
- Monitoring and Tracking Performances: PROs use advanced technology and monitoring systems to track when and where music is performed in public. This includes monitoring radio and TV broadcasts, live performances, online streaming, and other public uses of music.
- Advocacy and Education: PROs often engage in advocacy efforts to protect the rights of their members and to promote fair compensation for the use of their music. They may also provide educational resources to help members understand their rights and navigate the music industry.
- International Collaboration: Many PROs operate internationally and collaborate with each other through reciprocal agreements. This ensures that members receive royalties for performances of their music in foreign countries, and vice versa.
What is a “writer?”
A “writer” refers to an individual who creates the musical composition, which includes the musical notes, lyrics, or both. The term is commonly used to describe songwriters and composers. Here’s a breakdown of the roles:
- Songwriters: These are individuals who write the lyrics or words of a song. They focus on crafting the textual content that accompanies the music. Songwriters may work independently or collaborate with others, including composers.
- Composers: Composers are individuals who create the musical elements of a song, including the melody, harmony, and overall musical structure. Composers may work independently or collaborate with songwriters to create a complete musical composition.
PROs consider “Writer” to receive 50% (or half) of the performing royalties, while the publisher receives the other 50% (or half). Some organizations calculate this number differently. For example, BMI considers the Writer half at 100% and the Publisher portion as 100%. Regardless, there are two equal royalty remissions to these two entities.
What is a “publisher?”
A “publisher” refers to an entity or individual responsible for managing and administering the business aspects of a musical composition. The publisher works in collaboration with the songwriters and composers to promote, license, and collect royalties for their works. Here are key aspects of the role of a publisher in a PRO:
- Administration of Rights: Publishers handle the administrative aspects of a musical composition’s rights. This includes registering the work with the PRO, managing contracts, and ensuring that all necessary paperwork is in order for the licensing and collection of royalties.
- Licensing: Publishers negotiate and issue licenses for the use of musical compositions. This can include licensing for performances in various settings such as concerts, radio, television, online streaming, and more. The goal is to ensure that the composition is properly licensed, and the appropriate fees are paid for its use.
- Royalty Collection: Publishers work with PROs to collect royalties generated from the public performance of musical compositions. This involves tracking performances, collecting licensing fees from businesses and organizations that use the music, and distributing the earned royalties to the songwriters and composers.
- Promotion and Marketing: Publishers often play a role in promoting the works of their affiliated songwriters and composers. This may involve marketing efforts to increase the visibility of the music and secure opportunities for its use in various media and commercial outlets.
- Global Representation: Publishers may work internationally, collaborating with PROs in different countries through reciprocal agreements. This ensures that the musical compositions are properly represented and generate royalties when performed globally.
- Advocacy and Business Development: Publishers may advocate for the rights of their affiliated writers and composers, engaging in negotiations and business development activities to secure favorable terms for the use of their works.
It’s worth noting that some songwriters and composers choose to handle the administrative and business aspects of their music themselves, while others opt to work with music publishers. In either case, the collaboration between writers and publishers is crucial for effectively managing the business side of the music industry and ensuring that creators are compensated for the use of their works.
What is an IPI number?
An IPI number (Interested Party Information) is a number assigned to writers and publishers when they join a performing rights organization. This unique number is usually between 9 and 12 digits long and identifies you as the copyright holder of the song. Administrators and publishers may request this number in regards to licensing or collecting royalties.
Should I register as just a writer, or should I register as both a writer & publisher?
If you have an administrator or publisher collecting the publisher portion of royalties on your behalf, then you may not need to register for both. If you plan on self-publishing and want to represent yourself on business matters, we recommend signing up as both a writer and publisher. Even if you don’t plan on collecting publisher royalties now, it is a good idea to go ahead and set that up in case you want to collect those payouts later on.
Composers who distribute their music through Songburd Connect for self-publishing should register as both writer and publisher to ensure they are receiving full compensation for their work.
How much does it cost to join?
The cost to join a PRO will range from FREE to a few hundred dollars (USD). Some organizations may offer more benefits such as better royalty rates. You should review the benefits of each organization and decide if the cost to sign up is worth the investment.
Can I join a PRO even if I am not a citizen in the country the PRO is located?
For the most part, you are able to join any PRO regardless of nationality. PROs have agreements with other organization to collect royalties, however pay schedules may vary based on those agreements. Alternatively, you can also register with groups like Songtrust to administor your royalty collection.
Which PRO should I join?
We recommend starting with a PRO in your country. This will be a good starting point to see what they offer.
Is there a list of PROs based on country?
Yes! You can view our List of Performing Rights Organizations for quick reference, or you can find a more detailed list on CISACs website.
Where do I start?
Start by finding a PRO that you think will best represent you and your goals. See what benefits they offer, and check out their website for further instructions to register. It’s a good idea to register so that you can collect all potential revenue streams for your music!
