Understanding the U.S. Copyright Office’s Inquiry into PROs and Its Impact on Ugandan Artists

The U.S. Copyright Office has issued a Notice of Inquiry regarding the role of Performing Rights Organizations (PROs) in licensing and distributing royalties for musical works. This inquiry, prompted by concerns from Congress, aims to gather information about the growing number of PROs, the challenges in royalty distribution, and the overall impact on artists, businesses, and licensees. For musicians, songwriters, and publishers, understanding this inquiry is crucial, as it may shape future policies affecting how royalties are collected and distributed.

Background: What Are PROs and Why Are They Important?

PROs, or Performing Rights Organizations, manage public performance rights for songwriters, composers, and music publishers. These organizations collect royalties from businesses (such as radio stations, streaming services, bars, and restaurants) that publicly perform copyrighted music. They then distribute these royalties to rights holders.

Historically, the U.S. has had three major PROs:

• ASCAP (established in 1914)
• BMI (established in 1939)
• SESAC (established in 1931, private and for-profit)

In recent years, additional PROs have emerged:

• Global Music Rights (GMR) – 2013
• PRO Music Rights – 2018
• AllTrack – 2019

While these newer PROs have increased competition, they have also raised concerns about licensing complexities and fair royalty distribution.

Why Is the Copyright Office Investigating PROs?

1. Increase in PROs and Its Impact on Licensing
The growing number of PROs means that businesses using music must ensure they obtain proper licenses from multiple organizations. Some businesses, including small venues, bars, and restaurants, report receiving multiple royalty demands from different PROs, which can lead to higher costs and legal threats if they do not comply. The Copyright Office is looking to understand:

• Whether the rise of PROs has increased financial and administrative burdens for businesses.
• Factors contributing to the growth of new PROs.
• Ways to improve clarity and certainty for music users seeking to obtain licenses.

For artists and songwriters, this situation makes choosing a PRO more complex. It is essential to research which PRO offers the best deal for their music and to consider whether multiple PROs controlling different portions of a song could create licensing issues.

2. Concerns About Royalty Distribution
Congress has expressed concerns regarding the transparency and fairness of royalty distributions. The inquiry aims to determine whether independent and lesser-known artists are receiving fair compensation compared to major artists and publishers. The Copyright Office is investigating:

• How PROs track performances of songs.
• Whether certain tracking methods favor mainstream artists over independent creators.
• The accuracy and reliability of publicly available PRO data on song ownership and performance.

Artists should pay close attention to this issue, as flawed tracking systems could lead to underpayment or misallocated royalties.

Key Issues for Artists to Watch

1. Choosing the Right PRO
With multiple PROs in competition, songwriters and publishers need to carefully evaluate their options before affiliating with a PRO. Each organization offers different:

• Royalty rates
• Licensing terms
• Data transparency policies

2. Ensuring Proper Royalty Tracking
Many PROs use proxy data or sample-based tracking to estimate music usage rather than relying on actual reports from venues and digital platforms. This could mean that lesser-known artists do not receive full credit for the performance of their music.

3. Potential Changes in Legislation
If the government determines that current PRO practices are unfair or inefficient, new laws or regulations may be introduced. This could lead to changes in how royalties are collected, distributed, and reported.

Impact on Ugandan Artists Registered with BMI and ASCAP

For Ugandan artists affiliated with U.S.-based PROs like BMI and ASCAP, this inquiry could have several implications:

• International Royalty Collection: Since these PROs primarily operate within the U.S., Ugandan artists must rely on reciprocal agreements with local African PROs (such as UPRS in Uganda) to collect royalties from performances outside the U.S.
• Delayed or Inaccurate Payments: If tracking methods are flawed, international artists may face difficulties in receiving proper compensation for performances in both the U.S. and other regions.
• Increased Competition in the PRO Market: The rise of alternative PROs could create opportunities for Ugandan artists to affiliate with organizations that offer better tracking and payout structures. However, this also introduces complexity in ensuring proper registration.
• Potential Policy Changes: If new regulations emerge, Ugandan artists working with BMI or ASCAP may need to adapt to updated rules that could affect how they receive and report their earnings.

What Happens Next?

The Copyright Office has invited public comments on these issues, with deadlines for written submissions as follows:

• April 11, 2025 (initial comments)
• May 27, 2025 (reply comments)

Musicians, songwriters, and publishers are encouraged to participate in this inquiry to voice their concerns and experiences regarding the evolving landscape of PROs and royalty distribution.