Have you ever wondered how songwriters get paid? As you produce music, this question might run in your head. You should know that once your creation plays on air or at a venue, you should receive compensation for it.
To ensure that happens, the US Department of Justice issued Consent Decrees, of which performing rights organizations like ASCAP and BMI follow in their operation.
Through this, performing rights organizations collect royalties. This is all to ensure songwriters get paid every time someone performs and plays their music.
Let’s look into what a performing rights organization is and how it can help you.
A Performing Rights Organization is an agency or collective. They help songwriters and publishers to get the right compensation. They ensure that songwriters and publishers get paid through performance royalties.
What are performance royalties? These are dues owed to songwriters or publishers when their music gets played on the radio or used on TV shows and commercials. Even live venues performances can also qualify for performance royalties.
With that in mind, radio stations, venues and TV networks pay the performance royalties to Performing Rights Organizations. These organizations will distribute the money to affiliated songwriters and publishers.
For each area, there are performing rights organizations established to ensure. There are a good number of them within the US, and there are also others in various countries like Canada.
Here are some of the PROs that you can look into.
Also called the American Society of Composers, Authors, and Publishers, ASCAP is an organization of more than 700,000 members. These include songwriters, composers, and music publishers hailing from different genres of music.
They also licensed about 11.5 million songs and scores. ASCAP also happens to be the first PRO in the US, founded on February 13, 1914. Since then, they continue to aid songwriters and publishers.
Also known as Broadcast Music, Inc. BMI is also another US-based organization aiming to help and protect songwriters and music publishers. They amount to about 900,000 members, noted as one of the largest music rights organizations in the US.
Founded in 1939, BMI continues with its advocacy in ensuring songwriters get the proper compensation for their work.
Known as the Society of European Stage Authors and Composers. SESAC came into foundation on February 1931. This was America’s second PRO. It also has a repertory consisting of works published by European firms.
It has 30,000 affiliates with 400,000 songs licensed for public performance.
Also called the Society of Composers, Authors, and Music Publishers of Canada, SOCAN is a Canadian performing rights organization and known to be the largest in the area. With 150,000 direct members, one can argue that they are one of the biggest PROs.
It also has about 33 million compositions licensed in its huge database. Making it also one of the biggest compared to the databases and repertoires in other PROs.
Joining a PRO depends on which group you plan to affiliate with. Each one has its own set of requirements for you to join in and ways for you to pass your application.
SESAC, for one, runs on an invitation-only basis. The only way you can get to become part of their membership is when someone else sends you an invite.
There is also online membership when you look at the other PROs we have listed. You can sign up online for ASCAP, BMI, and SOCAN.
ASCAP has its own set of requirements such as your legal name, mailing address, and nature of business. It also comes with an application fee depending on what you are applying for.
For Writers or Publishers, there is a $50 application fee. If you apply for both, it runs at $100.
SOCAN has an online application available as well, granting you an easier time joining.
There are various benefits that you can gain in being a member and affiliate to a PRO. With some providing specifics, there are also general benefits that you can gain overall. It could prove useful as you prepare to top up with tips for your marketing and promotion.
Let us look at what these benefits are.
The most direct form of benefit that you will get from being an affiliate of a PRO is in the form of performing royalties that you receive. Each PRO has a detailed process in determining royalties. This information may come in detail when you check them as one of their members.
But the simpler rundown is that the moment your song gets played in a venue or on air, those who used it will pay the PRO. As for the PRO, they release royalty payments to artists on a scheduled basis.
ASCAP provides benefits on creation tools and education. They also include travel expenses and merchandising among their benefits that you can gain from.
SOCAN also provides financial benefits to provide songwriters a financial advantage. As for certain locations, they also provide accommodations for members when they venture to New York or Paris.
Another benefit that PROs would provide as well is in the form of insurance. This can be home insurance, auto insurance, or health insurance. The idea of ensuring songwriters and publishers have the proper care and accountability is a blessing in itself.
Music is a way of life for songwriters that their hard work deserves proper compensation. Being part of a performing rights organization ensures that they get the right compensation. If you are a songwriter or publisher, consider joining any of the PROs today as you will get more than just payment.
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THIS LICENSE AGREEMENT is made on 7th June 2024 ("Effective Date") by and between Licensee(hereinafter referred to as the "Licensee") also, if applicable, professionally known as Licensee, residing at [N/A] and Thomas Hodek. (hereinafter referred to as the "Licensor"). Licensor warrants that it controls the mechanical rights in and to the copyrighted musical work entitled "BEAT NAME("Composition") as of and prior to the date first written above. The Composition, including the music thereof, was composed by Thomas Hodek ("Songwriter") managed under the Licensor.
All licenses are non-refundable and non-transferable.
Master Use.
The Licensor hereby grants to Licensee an exclusive license (this "License) to record vocal synchronization to the Composition partly or in its entirety and substantially in its original form ("Master Recording“).
Mechanical Rights.
The Licensor hereby grants to Licensee an exclusive license to use Master Recording in the reproduction, duplication, manufacture, and distribution of phonograph records, cassette tapes, compact disk, digital downloads, other miscellaneous audio and digital recordings, and any lifts and versions thereof (collectively, the "Recordings", and individually, a "Recordings") worldwide for unlimited copies of such Recordings or any combination of such Recordings, condition upon the payment to the Licensor a sum of Varies US Dollars ($Varies), receipt of which is confirmed. Additionally licensee shall be permitted to distribute unlimited internet downloads for non-profit and non-commercial use.
Performance Rights.
The Licensor here by grants to Licensee an exclusive license to use the Master Recording in unlimited for- profit performances, shows, or concerts.
Broadcast Rights.
The Licensor hereby grants to Licensee an exclusive license to broadcast or air the Master Recording in unlimited amounts of radio stations.
Credit.
Licensee shall acknowledge the original authorship of the Composition appropriately and reasonably in all media and performance formats under the name "Thomas Hodek" in writing where possible and vocally otherwise.
Synchronization.
Licensee may exploit and monetize from licensee's unique derived work(s) of composition for use on TV, Film, Video game or other synchronous projects. Licensee may represent other publishing owners of the original composition for exploitation and have full authority of granting non-exclusive license for synchronization use as long as credit and publishing information is provided to such agency.
Consideration.
In consideration for the rights granted under this agreement, Licensee shall pay to licensor the sum of Varies US dollars ($Varies) and other good and valuable consideration, payable to "Thomas Hodek", receipt of which is hereby acknowledged. If the Licensee fails to account to the Licensor, timely complete the payments provided for hereunder, or perform its other obligations hereunder, including having insufficient bank balance, the licensor shall have the right to terminate License upon written notice to the Licensee. Such termination shall render the recording, manufacture and/or distribution of Recordings for which monies have not been paid subject to and actionable infringements under applicable law, including, without limitation, the United States Copyright Act, as amended.
Indemnification.
Accordingly, Licensee agrees to indemnify and hold Licensor harmless from and against any and all claims, losses, damages, costs, expenses, including, without limitation, reasonable attorney's fees, arising of or resulting from a claimed breach of any of Licensee's representations, warranties or agreements hereunder.
Audio Samples.
3rd party sample clearance is the responsibility of the licensee.
Miscellaneous.
This license is non-transferable and is limited to the Composition specified above.
Governing Law.
This License is governed by and shall be construed under the law of the Bayern DE, without regard to the conflicts of laws principles thereof.
- Licensee, owns 50% of publishing rights. - Tellingbeatzz (GEMA), owns 50% of publishing rights - Licensee, owns 50% of publishing rights. - Tellingbeatzz (GEMA), owns 50% of publishing rights
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