VYRALUNIVERSITY

Performance Rights
Organizations

WHAT IS A PERFORMANCE WHAT DO THEY DO AND HOW WHAT ARE THE DIFFERENCES
RIGHTS ORGANIZATION? DO THEY DO IT? BETWEEN ASCAP, BMI, &
SEASC?
We will define what a We will explain what We examine the 3 major
PRO is, how they came duties a PRO performs, PRO’s in the United
to be, and how they how it collects and States and compare
operate. We will also distributes royalties, them to see how they
go into how each PRO and how they interact are different, and how
is organized. with songwriters. they are alike.

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 Vyral University: Performance Rights Organizations
VYRAL MUSIC
A PERFORMANCE RIGHTS ORGANIZATION IS...
An organization that provides the service of royalty collection between copyright holders (you) and the people
who use your copyrighted material publicly (i.e. Radio Stations, Theaters, and Live Venues).
So what exactly is a Performance Rights
Organization? Basically, it is an organization that
collects and distributes performance royalties
from public performances. More commonly
referred to as a PRO, they act as a collection
agency for songwriters and publishers. Anyone
who wishes to perform your music publicly must
pay a fee for the use of your material, known as
a performance royalty. The PRO tracks and
documents these performances, and then pays
its members according to the number of times
each copyright is used. Obviously, this is a very
simple explanation, and there are many more
factors that go into this collection process,
which we will discuss in more detail later in this
article. A PRO does not promote your material,
nor do they help songwriters and publishers
locate and secure opportunities for their music.
A PRO...
•Collects Royalties
•Licenses Songs
•Helps Protect Your
Music
•Sets up co-writes
•Helps get a record
deal
•Register’s
copyrights
•Is your best
friend in the biz!
Performance Rights
Organizations
So who are the Performance Rights
Organizations in the US? There are three main
PRO’s: ASCAP (The American Society of
Composers, Authors and Publishers) BMI
(Broadcast Music Inc.) and SESAC (originally
stood for Society of European Stage Authors
and Composers). Each one performs the same
basic collection duties for its members, but in
very different ways (which we will go into later in
this article).
Recently there has been a new addition to
the family, SoundExchange. Prior to 1995, SoundExchange -(The New
record labels and recording artists do not
PRO)
recieve any royalties from public performances.
SoundExchange has spent the last few years SoundExchange is a new PRO that
collects performance royalties on
lobbying the government, and has been
behalf of performers (recording
successful in securing performance rights in the artists, musicians, etc.) They are
digital realm. a new addition to the PRO family in
the United States.
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What is a Public Performance... PERFORMANCE
A public performance is defined by the United States as:
MEDIUMS
1) to perform or display it at a place open to the public or at
any place where a substantial number of persons outside of a
normal circle of a family and its social acquaintances is gathered

2) to transmit or otherwise communicate a performance or

display of the work to a place specified by clause (1) or to the
public, by means of any device or process, whether the
members of the public capable of receiving the performance or
display receive it in the same place or in separate places and at
the same time or at different times. Radio
In other words, if it is broadcasted or performed for any type of
audience, it will probably fall under this definition.

Common Types include: Radio, TV, Live Venues, Streaming

Radio, Satellite Radio, Concerts, In-Store Music, etc...

Concerts
are among the
different types of
TV and Film
public
performances

Live concerts

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 Common Terms Used In PERFORMANCE RIGHTS
ORGANIZATIONS OTHER NORTH
AMERICAN
Work - For this article, it is used to describe a musical
composition.
PRO’S
Affiliate - (1) - Verb - The process of joining a Performance
Rights Organization (2) - A member of a Performance Rights
Organization (also referred to as a member)

Cue Sheet - A document created by a production company,

which lists all of the music included in the film, TV program, or
video production. Usually it has the song title, writer, publisher,
song duration, and usage type.

Repertory - A word used to define the entire catalog of works

in a PRO’s collection.

Blanket License - A license that is issued by a PRO that

grants the use of any song in their catalog for public performance.

ADI - The area of dominant influence, or the market region

reached by a particular TV or Radio station. Used to determine the
potential audience of a station.

Transmission - Describes a performance that is sent by a

device or process (i.e. Radio, TV, Satellite) and received in a
different place.

Synchronization - The use of a recording or musical work in

conjuction with visual media. (Examples include: TV, Films,
Commercials, Music Videos)

*See The Music Business Dictionary for a complete list

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 facts about Performance Rights
THE BIG 3 Organizations
-As a songwriter, you can only be a member of 1 of the PRO’s
- Most Publisher’s will set up separate companies for each of
the three PRO’s. One of the reasons this is done so that they can
publish music from all of their songwriters regardless of that
songwriter’s affiliation.
- Each of the three PRO’s has a unique way of tracking public
performances.
- When you register your songs with a PRO, you are essentially
giving them permission to grant a license for the use of your
music in public performances.
-The PRO grants a blanket license (use of any song in their
catalog) for a fee to each company/entity that wishes to use the
music. (the fee is generally based on the ‘extent of public reach’)
In other words: the amount of people who will hear the music.

PRO: Performance Rights Organization

A Performance Rights
Organization is responsible for
collecting all performance
royalties from radio stations,
CD sales and Digital Sales, and
all other commercial
performance uses and
distributes that to the artists
and publishing companies who’s
songs are registered with that Performance
organization. Rights
Organizations

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 ASCAP, BMI & SESAC - A SIDE BY SIDE

OWNED BY: Its Members (i.e. Owned by a group of Privately owned

the writers and 300 broadcast corporation
publishers) stations

HOW THEY PAY:

MEMBERSHIP Must have 1 Must Have 1 Must Apply and be

Published Work Published Work Selected through an
REQUIREMENTS application
process.

PAYMENT SCHEDULES

MEMBERSHIP
BENEFITS

OTHER SERVICES

HOW MUCH TO JOIN?

ON THE NEXT PAGE, WE WILL GO INTO MORE DETAIL ABOUT THE DETAILS OF EACH
ORGANIZATION. Hopefully you will be able to make an educated decision on which one is
best for you by the end of this artcle.

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ASCAP: THE AMERICAN SOCIETY OF COMPOSERS, AUTHORS & PUBLISHERS

FAST FACTS:

Founded in 1914 by COMPOSER VICTOR HERBERT

IN NYC

ORIGINAL MEMBERS INCLUDED JOHN PHILIP

SOUSA

Over 170,000 MEMBERS IN THE US

1ST PRO TO DISTRIBUTE ROYALTIES FOR

PERFORMANCES OVER THE INTERNET

A BRIEF OVERVIEW OF ASCAP...

ASCAP was the first Performance Rights and publishers, and in theory, are the persons you
Organization established in the United States. It was, would want to represent your rights, because they are
(and still is) owned and operated by its representing their own personal interests as
members. The membership of ASCAP elects songwriters and publishers. ASCAP is
ASCAP is
its board members democratically every the only Performance Rights Organization
owned and run
two years. The writers select 12 Writer that has an open books policy, meaning
by its
Board members and the publishers select that it’s financial records are available to its
members.
12 Publisher Board Members. This Board members and to the public. There are many
then elects a Present and a Chairman to added benefits to becoming a member of
oversee the operations of the organization. So what ASCAP, including career development, membership
does this mean for you as a writer or a publisher. It discounts, and multiple workshops, showcases, and
means that the people who run ASCAP are writers Events.

ASCAP MEMBER BENEFITS INCLUDE: SOFTWARE RETAIL MUSICPRO WEB-BASED

DISCOUNTS DISCOUNTS INSURANCE TOOLS

•WAVES •MEMBER •HEALTH •NIMBIT TOOLS

•MASTER STATIONARY •DENTAL •FANBRIDGE
WRITER •DISCMAKERS •AUTO/HOME •MUZLINK
•SIBELIUS •MUSICIAN’S •LIFE •RECORDXPRESS
•EAST/WEST FRIEND •STUDIO/TOUR •COLLABORATOR
•LEARN&MASTER •MUSIC DISPATCH •TRAVEL CORNER 2.0
•AND MORE.... •AND MORE... •AND MORE... •AND MORE...

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 BMI: BROADCAST MUSIC INCORPORATED

FAST FACTS:

Founded in 1939 by radio executives

First to represent artists performing rock

and roll

established to become a direct competitor to

ascap

A BRIEF OVERVIEW OF BMI...

BMI was founded by radio executives as a focused more attention towards classical music, and
competitor to ASCAP. One of the original intentions now is the overwhelming representative of classical
was to provide writers and publishers of music musicians. BMI is very similar to ASCAP in that
that was not represented by ASCAP a source it functions as a non-profit organization,
to license their music and collect
BMI IS meaning that the majority of its revenue is
RUN BY RADIO
performance royalties. BMI was the first distributed directly to its members. BMI
AND TV
PRO to represent the genres of blues, offers a variety of support services to its
EXECUTIVES
country, jazz, R&B, Gospel, Folk, Latin, and members, including workshops, showcases,
Rock and Roll. Early in its existence, BMI was and information to help build the careers of the
the primary PRO for Country artists as well as R&B songwriters and publishers who affiliate with BMI.
Artists. Later on, as ASCAP followed suit, BMI

BMI MEMBER BENEFITS INCLUDE: SUBSCRIPTION RETAIL MUSICPRO OTHER

LOREM IPSUM DISCOUNTS
ALIQUAM DISCOUNTS
BIBENDUM INSURANCE
CURABITUR DISCOUNTS
DAPIBUS
•AMERICAN •BLUE nunc Ut•HEALTH •SONICBIDS
Sodales nulla Lacus facilisis Cras volutpat
SONGWRITER MICROPHONES •DENTAL •FANBRIDGE
Ante auctor Feugiat at. In Ante in dui Mattis justo
•BILLBOARD •DELLligula •AUTO/HOME •YOULICENSE.COM
excepturi orci ac, turpis massa sed,
•VARIETY •SWEETWATER •LIFE fusce, •FEDEX
wisi, dolor suscipit donec, odio feugiat
•MUSIC eros •JBL •STUDIO/TOUR •SONG TANK
lacinia luctus, sed quasi amet gravida nunc.
CONNECTION •DISC MAKERS •TRAVEL •A&R SELECT
condimentum dolor, ut diam urna tempor Quam ac vel
•ANDsodales.
MORE.... •AND MORE... •ANDsit.
MORE... •AND MORE...
dis, mauris. amet est dapibus.

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 SESAC: SOCIETY OF EUROPEAN STAGE AUTHORS & COMPOSERS

FAST FACTS:

Founded in 1930 to help european publishers

with their american performance royalties

prior to 1970, sesac dealt exclusively with

publishers

sesac is headquartered in nashville,tn.

A BRIEF OVERVIEW OF SESAC...

SESAC is the smallest of the Performance Rights great deal more time developing the career’s of its
Organizations. It differs in a number of ways from members through its Writer/Publisher Relations
ASCAP and BMI. First, it is the only one of the 3 Representatives. They pride themselves on
that is a profit-based organization, meaning being the smallest organization, because
that it keeps some of the licensing fees that SESAC IS they feel that this gives them a better
it collects. Second, it is the only one to THE ONLY opportunity to serve their membership on a
have a selective membership process. PROFIT-BASED more personal and intricate level. Just like
SESAC carefully screens and chooses its PRO the other two PRO’s, SESAC offers a myrad
members, and prides itself on being an of membership benefits, as well as many
organization that puts an emphasis on the quality of different workshops, showcases, and informative
it’s catalog rather than its quantity. SESAC spends a articles for its “affiliates”.

SESAC MEMBER BENEFITS INCLUDE: SUBSCRIPTION RETAIL MUSICPRO OTHER

LOREM IPSUM DISCOUNTS
ALIQUAM DISCOUNTS
BIBENDUM INSURANCE
CURABITUR DISCOUNTS
DAPIBUS
•AMERICAN •BLUE nunc Ut•HEALTH •SONICBIDS
Sodales nulla Lacus facilisis Cras volutpat
SONGWRITER MICROPHONES •DENTAL •FANBRIDGE
Ante auctor Feugiat at. In Ante in dui Mattis justo
•BILLBOARD •DELLligula •AUTO/HOME •YOULICENSE.COM
excepturi orci ac, turpis massa sed,
•VARIETY •SWEETWATER •LIFE fusce, •FEDEX
wisi, dolor suscipit donec, odio feugiat
•MUSIC eros •JBL •STUDIO/TOUR •SONG TANK
lacinia luctus, sed quasi amet gravida nunc.
CONNECTION •DISC MAKERS •TRAVEL •A&R SELECT
condimentum dolor, ut diam urna tempor Quam ac vel
•ANDsodales.
MORE.... •AND MORE... •ANDsit.
MORE... •AND MORE...
dis, mauris. amet est dapibus.

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WHICH ONE IS BEST FOR ME?
It is a complicated process determining which
one of the PRO’s is best for you....

Which One Is The Best...is the age old question. It really

depends on you, your music, and your individual needs. I
know you say, “Well that doesn’t help much”. I WHO SHOULD I
understand, and that’s why i don’t want to just leave it at CHOOSE?
that. In the next 3 articles i will go into detail about each
of the Big 3, explaining their history, their corporate
structure, their membership benefits, and most
importantly, their payment and collection structures. At
the bottom of this screen you will see links to all of these
articles. I have also created a form that you can fill out that might help you narrow down the decision
based on a few key factors that most songwriters and publishers would be focusing on when
making a decision. Remember, this is an important decision, and not one to be taken lightly. Your
PRO can be your best friend, or your most frustrating partnership.

Relax....chances are if you are reading this article then you have just decided to take the plunge and
join a PRO. Unless Beyonce just released your first cut, or you wrote the title track for “Avatar 2”,
then you have some time to examine each organization to see which one fits you best.

Remember That....a PRO is not a publisher. It is still your job to promote and market your artistry,
and to find and secure opportunities for your music. They will assist you along the way, but don’t
base your decision on that factor alone. I say this because there will come a point in your career
when you will go from “trying to make it” to “trying to stay there”. At that point you will be glad you
chose a performance rights organization that best fit your need for an organization to collect and
distribute your performance royalties, and not one that spent countless hours developing your
career, only to find that you are not satisfied with the one job that they are supposed to perform for
you.

OTHER ARTICLES NEED MORE INFO

• ASCAP: A COMPLETE GUIDE
• BMI: A COMPLETE GUIDE
• SESAC: A COMPLETE GUIDE
• SOUND EXCHANGE: THE NEW
PRO
• ALL ABOUT ROYALTIES
• HOW TO SET UP YOUR OWN
PUBLISHING COMPANY
Copyright Registration
for more detailed information on
music publishing i recommend
checking out our bookstore for
some great guides to publishing!
Click Here

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