PERFORMING RIGHTS ORGANIZATIONS CAMPUS

PERFORMING RIGHTS ORGANIZATIONS

1. THE PERFORMANCE RIGHT WAS ADDED TO THE COPYRIGHT LAW IN 1897 AND REQUIRED USERS WHO PERFORM MUSIC TO HAVE A LICENSE AND COMPENSATE THE COPYRIGHT OWNER. (IMPORTANCE OF LICENSE)
2. WHO ARE THE USERS THAT NEED A PERFORMING RIGHTS LICENSE FROM THE COPYRIGHT OWNER?

TERRESTRIAL RADIO, TV, DIGITAL STREAMING/WEBCASTING, NON-SURVEYED VENUES AND FOREIGN CINEMAS.

FOR SONG COPYRIGHTS (@) THERE ARE 3 MAIN P.R.O.’S: ASCAP/BMI/SESAC (5)

THE P.R.O.’S PURPOSE: 1. TO LICENSE COPYRIGHTS 2. TO COLLECT LICENSE FEES … FEES NOT YET ROYALTIES 3. TO DISTRIBUTE ROYALTIES … NOW ROYALTIES 4. TO BE A LIASON FOR SW’S AND PUBS (CAN BE A SW’S CHAMPION AND PUB’S RESOURCE FOR FINDING AND SIGNING SW’S)

PRO’S SIGNING SW’S IS VERY COMPETITIVE: DYLAN/DIAMOND INCREACED THEIR VISIBILITY. PAGE 1

1. EVERY SW CAN ONLY AFFILIATE WITH “1” PRO: ASCAP, BMI AND SESAC. THEY WILL BE PAID PERFORMANCE ROYALTIES DIRECTLY FOR THE SONGS THEY’VE WRITTEN DURING THEIR AGREEMENT.
2. EVERY MUSIC PUBLISHER MUST AFFILIATE WITH “ALL P.R.O.’S” -- ASCAP, BMI AND SESAC, SO THAT THEY MAY BE PAID THE PUB’S SHARE OF PERFORMANCE ROYALTIES BASED ON THE SONGS THAT ARE BEING WRITTEN & PERFORMED BY EACH SW SIGNEDTO THEIR PUB. CO. IN THE TOTAL PUBLISHER’S CATALOG, THE SW’S SONGS WILL BE LISTED/CATALOGED ACCORDING TO THE SW’S PRO AFFILIATION. (REMEMBER YOUR HOMEWORK AT THE BOTTOM OF PAGE)
   1. A SONGWRITER SIGNED TO BMI, THEIR SONGS WILL BE LISTED IN THE PUBLISHER’S BMI CATALOG—PAID BY BMI.(ON BOARD)
   2. A SW. SIGNED TO ASCAP, THEIR SONGS WILL LISTED IN THE PUBLISHER’S ASCAP CATALOG---PAID BY ASCAP.
   3. A SONGWRITER SIGNED TO SESAC, THEIR SONGS WILL BE LISTED IN THE PUBLISHER’S SESAC CATALOG—PAID BY SESAC. PAGE 2

EXAMPLE: IN MY FINAL 4 CATALOG, MY COMPANIES: BMI: MARCH MADNESS MUSIC PUBLISHING: FOR EVERY BMI WRITER I SIGNED/SONGS….. ASCAP: ABOVE THE RIM MUSIC PUBLISHING: FOR EVERY ASCAP WRITER I SIGNED/SONGS..

SESAC: OFF THE BENCH MUSIC PUBLISHING: FOR EVERY SESAC WRITER SIGNED/SONGS…..

1. OTHER EXAMPLES: SONY MUSIC PUBLISHING CATALOGS: TREE MUSIC PUBLISHING IS FOR BMI/SW’S SONGS SONY-CROSS KEYS MUSIC PUBLISHING IS ASCAP/SW’S SONGS

UNIVERSAL MUSIC PUBLISHING CATALOGS: UNIVERSAL MUS. PUB IS ASCAP/SW’S SONGS SONGS OF UNIVERSAL IS BMI/SW’S SONGS

THE NAMES OF EACH PUBLISHING COMPANY HAS TO “CLEAR” THE P.R.O. DATA BASE TO MAKE SURE THERE ARE NO OTHER PUB CO’S WITH THAT NAME.

1. THE PUB DEPT. OF COPYRIGHT REGISTERS SONGS WITH COPYRIGHT OFFICE AND WITH THE PRO’S.

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1. THEN THE SONGS ARE ENTERED BY THE PRO’S INTO THEIR “REPETOIRE’” (PRO: NOT A CATALOG!!!)
2. THE SW/P.R.O. AGREEMENT TERM IS FOR 2 YEARS. THE AGREEMENT RENEWS AUTOMATICALLY UNLESS THE SW NOTIFIES THE PRO WITH A LETTER OF RESIGNATION 30 DAYS BEFORE THE SIGNING ANNIVERSARY. WHEN THE RESIGNATION TAKES AFFECT THEY CAN SIGN WITH ANOTHER P.R.O. COPYRIGHT INFO: TO BE PLACED AT THE BOTTOM OF LYRIC PAGE @(COPYRIGHT SYMBOL)/OR SPELL OUT THE WORD COPYRIGHT/DATE/NAME/PUB CO./P.R.O)./..WHO’S GOING TO BE PAID.

PERFORMING RIGHTS ORGANIZATIONS

1. ASCAP/AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS. CEO: ELIZABETH MATTHEWS a. CREATED 1914….BY A GROUP OF THE MOST SUCCESSFUL SONGWRITERS AT THE TIME.

b. NOW: 875,000 MEMBERS (SW’S/PUBS) c. GOVERNED BY A BOARD OF 12 SW’S AND 12 PUBLISHERS. NOT FOR PROFIT ORGANIZATION !!! PAGE 4

1. BMI/BROADCAST MUSIC INC. BIGGEST PRO MICHAEL O’NEILL PRES A. CREATED 1940…@ 1.5 MILLION MEMBERS

ORIGINALLY: NOT FOR PROFIT ORGANIZATION!! CONVERTING TO FOR PROFIT, RUMORED TO BE SOLD .

1. CREATED BY BROADCASTERS: WHY? THEY FELT THEY WERE BEING OVERCHARGED BY ASCAP.
2. GOVERNED BY A BOARD OF 13 BROADCASTERS (CONFLICT OF INTEREST-?)
3. THEY HAVE AN OPEN DOOR POLICY: SMALL PRO UNTIL THEY OPENED THEIR DOOR TO BLUES, COUNTRY, ROCKnROLL SW’S. ASCAP WOULDN’T SIGN THOSE SW’S.
4. THE U.S. ROCK AND ROLL ARTISTS SIGNED TO BMI INFLUENCED THE BRITISH INVASION’S ARTISTS TO SIGN WITH BMI.
5. SESAC/SOCIETY OF EUROPEAN STAGE AUTHORS AND COMPOSERS. JOHN JOSEPHSON CHAIRMAN/CEO.

A FOR PROFIT ORGANIZATION!!

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A. EUROPEAN PRS THAT OPENED THEIR OFFICE IN THE U.S. IN 1930. 30,000 AFFILIATES

B. OWNED BY BLACKSTONE GROUP/VENTURE CAP

C. SESAC WAS A MINOR PLAYER BEFORE THE EARLY 2,000’S BUT THAT CHANGED WITH THE SIGNING OF BOB DYLAN/NEIL DIAMOND--THEIR CATALOGS WERE TRANSFERRED FROM OTHER PRO’S TO SESAC. THIS INCREASED SESAC’S VISIBILITY/CREDIBILITY.

D.SESAC OWNS THE HARRY FOX AGENCY (MECHANICAL RIGHTS ORG.), CCLI. THEY’RE ABLE…**TO BUNDLE LICENSES**: COMBINE PERFORMANCE/MECHANICAL LICENSES IN ONE LICENSE.

ASCAP AND BMI CAN’T BUNDLE LICENSES BECAUSE OF A CONSENT DECREE (ANTI-TRUST/ANTI-MONOPOLY AGREEMENT) SIGNED IN 1941. THEY CAN ONLY LICENSE THE PERFORMANCE RIGHT. THEY’RE STILL WORKING TO GET IT CHANGED BY THE C.R.B./D.O.J.

F … IT’S NOT CONFIRMED, BUT AFTER LICENSE FEES MINUS OPERATING EXPENSES, ROYALTIES PAGE 6 COLLECTED ARE SPLIT 50% FOR SESAC AND THE OTHER HALF, SPLIT 50/50 FOR SESAC-SW’S AND PUBS. IT’S A PRIVATE CORP, SO WE DON’T KNOW FINANCIAL INFO

1. SOUNDEXCHANGE: NON PROFIT (MASTER RECORDING.) A P.R.O. BECAUSE IT COLLECTS AND DISTRIBUTES ONLY DIGITAL ROYALTIES FOR ARTISTS/LABELS
2. GLOBAL MUSIC RIGHTS: COLLECTS ARTIST AND SONG ROYALTIES FOR SELECT ARTISTS.

PURPOSE OF PROS: LICENSING, COLLECTION & DISTRIBUTION

A. LICENSING: (STAFF CALLS/VISITS/CEASE AND DESIST ORDER IF NEEDED FOR INFRINGMENT)

1. THE PRO’S ISSUE BLANKET LICENSES TO COPYRIGHT USERS.(SONGS BEING PERFORMED) WHO ARE THE USERS?

TERRESTRIAL RADIO/TV/NON-SURVEYED VENUES/DIGITAL STREAMING/FOREIGN CINEMAS. 2. A BLANKET LICENSE GIVES THE USER LEGAL PERMISSION TO PLAY ALL SONGS IN THE P.R.O.’S REPERTOIRE (NOT CATALOG). (REPETOIRE IS NOT A CATALOG). PAGE 7

SOURCES THAT NEED A BLANKET LICENCE:

THE FOLLOWING WILL PAY A BLANKET LICENSE FEE

1.TERRESTRIAL RADIO: GENERATES THE HIGHEST AMOUNT OF PERFORMANCE ROYALTIES TO PUBS/SW’S FOR HIT SONGS.

2. TV: THE NEXT HIGHEST AMOUNT;SHOWS/MOVIES 3. DIGITAL PERFORMANCE: A MAJOR SOURCE OF INCOME. LIVE STREAMING-WEBSITE/STREAMING PLATFORMS 4. NON-SURVEYED VENUES: RESTAURANTS (STICKER ON DOOR?), ELEVATORS, BARS, PHONE ON HOLD MUSIC, CONCERT HALLS: ROYALTIES DISTRIBUTED TO SW’S BASED ON THE TOP 2OO CONCERTS REVENUES FOR THE YEAR. 5. FOREIGN CINEMAS MUST HAVE A BLANKET LICENSE. U.S. CINEMAS DO NOT.

B. COLLECTION: THE BLANKET LICENSE FEE IS BASED ON A % OF THE USER’S GROSS INCOME: ASCAP CHARGES 1.7%--BMI CHARGES 1.6% (TO USERS)

• 1. FOR 2021 ASCAP GENERATED $1.5 BILLION BMI GENERATED: $1.7 BILLION PAGE 8
  2. PRO’S DEDUCT 13% OF THE TOTAL LICENSE FEES COLLECTED FOR OPERATING EXPENSES (NON PROFIT)
  3. WHAT’S LEFT CREATES THE ROYALTY POOL AND IS DISTRIBUTED TO SONGWRITERS AND PUBLISHERS.

***P.R.O. LICENSE FEES ON OVERHEAD/BB***

C.DISTRIBUTION: PRO ROYALTY REPORTS ARE ISSUED QUARTERLY TO SW’S,PUBS. REMEMBER: THE PRO’S SEND ROYALTY CHECKS DIRECTLY.

THE FACTORS THAT DETERMINE MONEY DISTRIBUTED TO SW’S AND PUBLISHERS ARE BASED ON THE FOLLOWING:

1. TIME OF DAY: PRIMETIME: 6-11 PM (MOST $), LATE NIGHT: 11-2AM, OVERNIGHT: 2-6AM, DAYTIME: 6AM-6PM.

2. TYPE OF PERFORMANCE:

a. THE FEATURED PERFORMANCE… 1. WHEN MUSIC IS THE ONLY FOCUS ON A TV EPISODE OR SONGS PLAYED ON TERRESTRIAL RADIO ARE ALWAYS CONSIDERED A FEATURED PERFORMANCE.

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b. THEME SONG c. TV BACKGROUND PERFORMANCE

3. LENGTH OF THE PERFORMANCE

4. SURVEYS

THE 2 TYPES OF SURVEYS

1. THE CENSUS SURVEY: USED FOR TV ONLY. TV SHOWS MUST SUBMIT CUE SHEETS TO THE PRO’S.
2. THE SAMPLE SURVEY: FOR RADIO ONLY. THE SAMPLE TAKEN DETERMINES HOW MANY TIMES A SONG HAS BEEN PLAYED IN ONE MARKET, THEN APPLIED TO COMPARABLE SIZE RADIO MARKETS. (EX: CHARLOTTE AND NASHVILLE)

PARAMETERS OF PERFORMANCE EARNINGS

SHOW ON OVERHEAD

(USA/BEFORE FOREIGN INCOME)

THE POP MARKET: TOP 5 RADIO HIT=$1MILLION--$1.5 MILLION PAGE 10

THE COUNTRY MARKET: TOP 5 RADIO HIT--$750K--$1.2 MILLION

THE AMERICANA MARKET: TOP 5 ON AMERICANA CHART--$20K--$30K

CONTEMPORARY CHRISTIAN/GOSPEL MARKET: TOP 5 CCM CHART--$5K--$12.5K

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