The U.S. Copyright Office has launched an official inquiry into performing rights organizations (PROs) following congressional concerns about transparency and licensing practices.

This investigation comes in response to a letter from Representatives Scott Fitzgerald, Jim Jordan, and Darrell Issa to Register of Copyrights Shira Perlmutter, requesting examination of PRO licensing fee practices.

Key Areas of Investigation:

• The proliferation of PROs beyond ASCAP and BMI, including GMR, SESAC, and AllTrack
• Increased financial burden on small businesses, particularly bars and restaurants
• Accuracy of royalty calculations and distributions
• Protection of independent artists and smaller publishers
• Potential infringement risks from multiple PRO sources

The inquiry has established these deadlines:

• Initial public comments: April 11th
• Follow-up responses: May 27th

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 efficiency in music licensing.

Current Challenges:

• Complex licensing system affecting businesses of all sizes
• Limited accuracy in tracking non-digital public performances
• Difficulty in verifying compensation for independent artists
• Growing number of PRO sources requiring separate licenses

While some markets, like the UK, are implementing technology solutions such as Audoo's Audio Meter for accurate music usage tracking, the U.S. still largely relies on estimates and extrapolations for non-digital public performances.

The Copyright Office's investigation aims to address these systemic issues and potentially recommend policy changes to improve the current music licensing landscape.

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