zaro

What is the Equivalent of PRS in the US?

Published in Music Royalties 4 mins read

In the United States, the equivalent functions of PRS (Performing Right Society) are primarily handled by three major performing rights organizations (PROs): ASCAP, BMI, and SESAC. These organizations are responsible for collecting and distributing performance royalties to songwriters, composers, and music publishers for the public performance of their musical works.

Understanding Performing Rights Organizations (PROs)

Performing rights organizations play a crucial role in the music industry by ensuring that creators are compensated when their music is performed publicly. This includes performances on radio, television, streaming services, in live venues, restaurants, bars, and other public spaces.

In the UK, PRS for Music operates as a single entity, collecting royalties for both performing rights (through PRS) and mechanical rights (through MCPS, often operating together as PRS for Music). In the US, the collection of performance royalties is distributed among the three main PROs. PRS for Music works with these US societies to ensure its members' performance royalties from US live performances and other public uses are collected.

The US Equivalent: ASCAP, BMI, and SESAC

While PRS operates as a unified body in the UK for performance rights, its functions for collecting members' performance royalties in the US are carried out by ASCAP, BMI, and SESAC. These organizations license businesses to use music and then distribute the collected fees to their affiliated songwriters, composers, and publishers.

ASCAP (American Society of Composers, Authors and Publishers)

ASCAP is a non-profit organization and one of the oldest and largest PROs in the United States. Founded in 1914, it represents a vast catalog of musical works across all genres. Songwriters, composers, and publishers affiliate with ASCAP to have their public performance rights managed, ensuring they receive royalties when their music is played publicly.

BMI (Broadcast Music, Inc.)

BMI is another major non-profit PRO in the US, established in 1939. It represents a diverse range of creators and boasts an extensive repertoire of songs. Like ASCAP, BMI licenses businesses for the public performance of music and distributes the collected royalties to its affiliated songwriters, composers, and publishers.

SESAC (Society of European Stage Authors and Composers)

SESAC stands out as the only for-profit PRO among the three main organizations in the US. While smaller than ASCAP and BMI, it operates on an invitation-only model, maintaining a more exclusive roster of affiliated artists. SESAC also licenses music users and distributes performance royalties to its members.

How US PROs Operate

The operations of US PROs involve several key aspects:

  • Licensing: They issue blanket licenses to businesses, venues, and broadcasters, allowing them to legally play the music in their respective catalogs. These licenses cover millions of songs.
  • Monitoring Performances: PROs utilize various methods, including digital tracking, surveys, and performance reports from licensees, to monitor how and where music is being performed.
  • Royalty Distribution: Based on the data collected, PROs calculate and distribute royalties to their affiliated songwriters, composers, and publishers. The distribution frequency and methodology vary slightly among the organizations.

For example, a live music venue in the US typically needs to obtain licenses from ASCAP, BMI, and SESAC to legally cover the performance of all songs in their respective repertoires. This ensures that the creators behind the music performed at the venue are compensated.

Key Similarities and Differences

While PRS is a single organization for performance rights in the UK, the US system involves multiple, competing PROs. However, their fundamental purpose remains the same: to protect the intellectual property rights of music creators and ensure fair compensation for the public use of their works.

Organization Country/Region Primary Function Membership Type
PRS for Music UK Collects performance royalties for songwriters, composers, and publishers (often combined with MCPS for mechanical rights), streamlining the process within the UK. Works with US PROs for royalties generated in the US. Open to all eligible creators.
ASCAP US Collects performance royalties for songwriters, composers, and publishers from public performances, including live events, broadcast, and streaming. Open to all eligible creators.
BMI US Collects performance royalties for songwriters, composers, and publishers from public performances, including live events, broadcast, and streaming. Open to all eligible creators.
SESAC US Collects performance royalties for songwriters, composers, and publishers from public performances, including live events, broadcast, and streaming. Operates as a for-profit entity with a curated roster. Invitation-only for creators.