BMI is calling on its affiliates, songwriters, composers, and publishers, to participate in the US Copyright Office’s (USCO) inquiry into performance rights organizations (PROs). The inquiry, launched on February 10, aims to examine the increasing number of PROs and how they distribute licensing revenue.
The inquiry follows a letter from three members of the House Judiciary Committee, which raised concerns from small businesses about new PROs complicating the music licensing process. Some businesses claim they have received multiple royalty demands from different entities, leading to confusion and legal threats.
BMI argues that these concerns are being used to justify new regulations that could reduce payments to music creators. In a message to affiliates, BMI stated that the goal of these businesses is to lower royalty payments rather than address legitimate issues in the marketplace. The organization is urging songwriters and publishers to submit comments to the USCO, opposing additional oversight.
To assist affiliates, BMI has provided a form letter that they can submit before the April 11, 2025, deadline. The letter outlines concerns that the inquiry focuses too much on the perspective of music users rather than the creators who rely on royalties. It also highlights existing industry solutions like Songview, which provide transparency in copyright ownership, arguing that further regulation is unnecessary.
BMI, which operated as a nonprofit for much of its history before transitioning to a for-profit model in 2022, remains a key advocate for music creators. Below is the full text of the letter BMI is encouraging affiliates to submit.
Below is the full text of BMI’s letter, which it is urging affiliates to submit to the USCO.
February 11, 2025
Ms. Shira Perlmutter
Register of Copyrights
United States Copyright Office
Washington, D.C. 20559-6000
Dear Register Perlmutter,
We are writing in response to the Notice of Inquiry (NOI) published by the U.S. Copyright Office in the Federal Register on February 10, 2025, titled “Issues Related to Performing Rights Organizations.” We recognize this inquiry was initiated in response to a September 2024 letter sent to you by three Members of Congress. We strongly believe that letter focused solely on the perspective of music licensees and failed to consider our perspective as songwriters, composers, and music publishers who earn our living from the public performance royalties collected by PROs. We are similarly disappointed that the questions posed in your inquiry also focus on music users, and not music creators.
This is concerning because it is apparent that the Congressional letter’s intention was to question the efficacy of the music licensing marketplace in order to further a specific agenda of additional regulation of PROs and ultimately enable licensees to pay less to music creators and copyright owners for the use of our creative work.
Unfortunately, this is not new. Licensees and their lobbying organizations have been making the same false and misleading arguments with that very goal in mind for years. Now they are using the emergence of new PROs who have gained very little traction in acquiring any share of repertoire actually used by licensees as the centerpiece of their renewed push for regulation.
We know that new entrants are evidence of a competitive, vibrant, and functional marketplace. Competition, particularly for creators, is positive. Moreover, we appreciate that it is critical for licensees to understand who represents the music they use in their businesses and for PROs to be clear about their catalogs. To this end, BMI and ASCAP have already delivered an industry solution called Songview, which provides transparency around copyright ownership. If other organizations are not as committed to transparency, there are already state laws across the country governing PROs that protect consumers from deceptive business practices. We do not believe new regulation or oversight on us as creators or on BMI, the PRO that collects and pays our royalties, is required. What is required is simply enforcement of existing laws and regulations.
In today’s music industry, streaming services and the fractions of pennies they pay per stream have made it even more difficult for us to earn a living. We rely on public performance royalties for our livelihoods now more than ever. This is why we also noted with interest the request for the Office to evaluate the collection and distribution of general licensing dollars. As you know, this is a broad category that includes, among others, bars, restaurants, and other smaller venues with live performances, and it is well known that music usage in this category is the most difficult to capture. Moreover, every dollar PROs spend tracking data means dollars coming out of our royalty pool.
Again, we believe this is a false issue raised by music users for the specific purpose of reducing license fees. However, even accepting this concern as sincere, it is clear that the solution to this purported problem should not fall on us and our PROs. The obligation of music users to pay for the right of public performance exists regardless of and without relation to the distribution practices of PROs. If licensees truly are concerned about royalty distribution, we and our PRO would welcome additional reporting from them to better capture their usage of our music in their businesses.
Lastly, regarding live concert venues, it is standard practice that those licensees deduct public performance licensing fees straight out of the pockets of the artists performing at their venues, artists who are very often songwriters. We believe it would be useful to know how widespread this practice is, and whether the total fees they deduct exceed what they pay for their public performance licenses, if and when a venue has actually even taken the necessary licenses.
Importantly, songwriters are the ultimate small business owners who work hard at their profession and deserve fair compensation. We are already the most heavily regulated segment of the music industry. PROs exist to ensure we can continue to earn a living through our craft and keep creating the music that is both a powerful driver of the U.S. economy and widely enjoyed around the world.
Thank you for your attention to our thoughts on this matter.
BMI continues to advocate for fair compensation for songwriters and publishers. The organization believes that enforcing existing regulations, rather than introducing new ones, is the best way to ensure a fair music licensing system. Affiliates are encouraged to submit their responses before the April 11 deadline.
