2-12) List the 3 major performance rights organizations.

Whenever music is played in public, broadcast over the airwaves, placed in a TV show, commercial, movie or video game, the owners of that tune get paid. Or, that is, they should get paid. In order for someone to collect money from a song that is being broadcast, there must be a means or method to monitor just how, when, and for what purpose the music was used. Considering the fact that there are literally thousands of radio and TV stations, ad agencies, productions houses, and film studios in the US alone, that could be a very daunting prospect for someone to try and do themselves.

This is where performing rights organizations (PROs) like ASCAP, BMI and SESAC come into play.

Performing rights is one of the more lucrative—meaning profitable—rights existing to the owner of a copyright. Under law, copyright holders are given the exclusive right to profit from their original work, and if anyone else wishes to utilize their work that individual—or company-- must negotiate a fee with the copyright holder. Without such a negotiated license in hand, the user of that music would be in serious violation of the law and subject to monetary damages and/or jail time.

The American Society of Composers, Authors, and Publishers (ASCAP) was established in the 1920s to monitor the usage of member’s music in public and on the radio, and with the newly-established film industry. ASCAP over the years also included many other entities in their monitoring system that play or perform music such as TV stations; clubs; theaters; skating rinks; amusement parks; and shopping malls. These places would negotiate with ASCAP for a license, and ASCAP would in turn set a fee based on, among factors, size of the venue, attendance, and frequency of use. Once these public venues paid the fee, they were then allowed to use any music from any member ASCAP represented. Once the money from those fees is collected, ASCAP distributes it among its members, deducting an administrative fee in the process.

Broadcast Music, Incorporated (BMI) was founded in the 1940s by radio station owners who were former members of ASCAP. These owners broke ties with ASCAP because they felt that ASCAP was charging the radio industry exorbitant fees to play music. BMI, like ASCAP, monitors the public usage of their member’s songs and also collects fees for that usage. They too distribute funds collected to their members, while also deducting a percentage to cover administrative costs.

The Society of European Stage Authors and Composers (SESAC) is the third of the 3 performing rights organizations in the United States. SESAC was founded in 1931 and primarily handled the work of European composers of classical music. In the last few decades, however, SESAC expanded its membership to include writers and publishers of practically all forms of music. While ASCAP and BMI constantly battle for the right to say they are the number one PRO, SESAC’s position has rarely changed from the number 3 spot.

All three PROs represent both writers and publishers, yet it is not mandatory that either join any of the organizations. If a writer or publisher felt they could adequately monitor the many uses of their material, they are more than welcome to take on the task themselves. Most writers and publishers, however, have no viable way to do just that and therefore contract with one of the PROs to handle what would otherwise be an overwhelming task.

Membership in the PROs is free, but a writer or publisher needs to have, depending on which PRO they join, a song published and/or recorded, or a song about to be distributed and/or sold. Upon joining, members agree to have a portion of the money collected by the PROs deducted and paid to the organizations to cover expenses.

Each of the PROs has a unique system of monitoring its various licensees in determining what rate to charge them, so it is best for the writer or publisher interested in joining one to inquire to that PRO for specifics.

ASCAP, BMI, and SESAC all take in new members by recruiting from the vast pool of amateur writers in the US. They also take in writers by luring them away from the other PROs. If a writer has gained some significance in the market—meaning he or she is a hit-making, money-earning writing machine—they are often recruited to become a member of a particular PRO with offers of huge advances on expected revenues their songs will earn. Some writers have collected multi-million dollars paychecks this way.

Membership in the PROs also shift because some writers or publishers may disagree with how one PRO collects money for their songs over another, or that accountings of money earned is not accurate or current. Again, check the information that each PRO provides as to whether or not their procedures are satisfactory.

BMI can be contacted at www.bmi.com

ASCAP can be reached at www.ascap.com

SESAC is available at www.sesac.com