The U.S. Copyright Office has launched a formal inquiry into performing rights organizations (PROs) following concerns raised by Congress members about transparency and licensing practices.

The inquiry comes in response to a letter from Representatives Scott Fitzgerald, Jim Jordan, and Darrell Issa to Register of Copyrights Shira Perlmutter, requesting an examination of current PRO licensing fee practices.

Key Areas of Concern:

• The proliferation of PROs beyond traditional players ASCAP and BMI to include GMR, SESAC, and AllTrack
• Increased financial burden on small businesses, particularly bars and restaurants
• Higher risk of infringement allegations from multiple PRO sources
• Accuracy of royalty calculations and distributions, especially for independent artists
• Transparency in performance tracking and compensation

Important Dates:

• Initial public 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.

Current Performance Tracking Challenge: While some countries are adopting modern tracking technology (like Audoo's Audio Meter in Europe), U.S. public performance tracking still largely relies on estimates and extrapolations, potentially disadvantaging smaller artists and publishers.

The inquiry aims to address these challenges and gather input from stakeholders to improve the current music licensing system, making it more transparent, efficient, and fair for all parties involved.

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