Here’s an excerpt from an extremely valuable piece on AmericanSongwriter.com. Please read on by clicking the link provided.
The US Copyright Office and the House of Representatives are currently considering an overhaul of some of the copyright regulation that governs musical licensing. Here are some quick facts on the current state of music licensing.
Performance Royalties are the fees music users pay when music is performed publicly. Music played over the radio, in a restaurant or bar, or over a service like Spotify or Pandora is considered a public performance.
- Performance Rights Organizations or PROs (in the US that’s BMI, ASCAP, and SESAC) collect songwriting performance royalties from music users, and then pay songwriters and rights holders (publishers).
- Like BMI and ASCAP, Soundexchange collects recording performance royalties to recording artists and labels whenever a music is performed publicly — but only for digital performances.
- That’s because copyright regulation as it stands means terrestrial broadcasters (AM/FM radio) pay performance royalties to songwriters, but not the recording artists.