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

The inquiry, announced from the James Madison Memorial Building in Washington, D.C., comes in response to a letter from Representatives Scott Fitzgerald, Jim Jordan, and Darrell Issa to Register of Copyrights Shira Perlmutter.

Key Areas of Investigation:

• The proliferation of PROs beyond traditional players ASCAP and BMI
• Increased costs and burdens on small business licensees
• Accuracy of royalty calculations and distributions
• Transparency in compensation for independent artists and smaller publishers

Current Challenges:

• Multiple PROs (ASCAP, BMI, GMR, SESAC, and AllTrack) creating complexity
• Risk of infringement allegations for businesses
• Limited accuracy in tracking public performances
• Potential disparities in compensation between major and independent artists

Timeline for Public Input:

• Initial comments due: April 11th
• Follow-up responses due: 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.

The investigation aims to modernize and improve the current system while addressing concerns from both business owners and rights holders.

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