Performing Rights Organizations
The law says that no one can perform a copyrighted work in public unless they get permission from the copyright owner. Getting permission generally involves money. This law is the best thing to happen to songwriters since the introduction of copyright laws. Getting written permission for each individual song could be tough for a radio station that plays hundreds of songs a year and time-consuming for writers and publishers, so some very special companies came into being to handle this part of the business.
Performing rights organizations, or PROs, grant “blanket” licenses to radio and TV stations, networks, venues, and other music users that allow them to use all the music owned by the songwriters and publishers represented by that PRO. In return a music user pays the PRO, and most of that money gets distributed to the songwriters and publishers.
PROs represent hundreds of thousands of writers and publishers in the United States alone and frequently use this clout to lobby for songwriter's rights.
Before PROs, most songwriters made little money. A songwriter's income came primarily from the sale of sheet music. Performance rights, though legally protected, were mostly paid on the honor system. This meant that, aside from the major vaudeville venues and large concerts, songwriters and publishers rarely saw a penny in performance royalties on their works.
ASCAP
Founded in 1914, ASCAP (American Society of Composers, Authors and Publishers) was the first performing rights organization in the United States and is the only one owned and run by the songwriters and publishers who are its members. ASCAP is a nonprofit association; its board of directors is elected by the membership.
ASCAP is very active in representing songwriters before the U.S. Congress and has, for nearly a century, initiated reforms in copyright law that benefit and protect songwriters. ASCAP pays performance royalties on songs solely based on the type and estimated number of performances they receive. It also sponsors seminars, showcases, grants, and award programs for promising writers. To join ASCAP, you must be a songwriter, publisher, or a songwriter's heir.
BMI
BMI stands for Broadcast Music Incorporated. Like ASCAP, BMI is a nonprofit company. Unlike ASCAP, you don't have a vote or a say in running it. BMI was started by radio broadcasters who were unsatisfied with ASCAP. Competition between the two organizations keeps both PROs working fairly hard to keep members happy and loyal.
Long ago, ASCAP was pretty snooty about allowing country and R&B writers into the organization. BMI was willing to profit from anyone, regardless of genre, and decreed an open door policy. It didn't take ASCAP long to see the costly error of its ways, but many older writers feel an allegiance to BMI because it welcomed them when no one else did. BMI pays based on estimated performances but gives bonuses to songs that get a lot of play, meaning that there's even more money for the big hits and less for the small fry.
In order to collect money for performance royalties, you and your publisher must both be affiliated with the same PRO. For mid-sized to large publishers, this often means incorporating two or three different companies, one for each PRO, so that they can work with any songwriter regardless of his or her PRO affiliation.
SESAC
SESAC (Society of European Stage Authors and Composers) is a for-profit company. This gives them the ability to woo you if they really want you by doing things that wouldn't be kosher for a nonprofit. SESAC generally pays faster than U.S. PROs, but may pay less overall. SESAC is small, but it looks like they'll be around for a while.
Around the World
Almost every country in the world has at least one performing rights organization. If you live outside the United States, you'll need to join a PRO in your own country. Many PROs, like Performing Right Society (PRS) in England and the Society of Composers, Authors, and Music Publishers of Canada (SOCAN), are affiliated with ASCAP or other U.S. PROs to make international royalty collections easier.
Choosing a PRO
There is no “best” when it comes to PROs. They all have their own advantages and ways of doing things, and they all pay about the same. Find out which one is right for you. Ask for information packets from all three. Visit a nearby branch office and try to get a vibe. Call ahead for an appointment with a writer rep who will explain things. Writer reps are wonderful people who spend their time helping songwriters.
You won't get to negotiate anything about your PRO contract. You will once again be presented with a standard agreement. Read it over and sign it. Most PRO contracts are indefinite or automatically renew every so often, so make sure you know how to get out of your contract. With some PROs, this isn't easy.
