Music Licensing, Inc. and Pro Music Rights Challenge Legacy Performing Rights Organizations: A Detailed Response to the US Copyright Office
On April 14, 2025, Music Licensing, Inc. (OTC: SONG) and its wholly owned subsidiary Pro Music Rights, Inc. (PMR) submitted an extensive response to the U.S. Copyright Office’s Notice of Inquiry (Docket No. 2025–1). This response aims to shed light on the longstanding anti-competitive practices of legacy Performing Rights Organizations (PROs), such as BMI and ASCAP, while proposing a groundbreaking and transparent alternative through PMR’s equitable licensing model.
Historical Context: The Anticompetitive Practices of Legacy PROs
The music industry has undergone significant changes in recent decades, with digital streaming platforms becoming the primary source of revenue for artists and rights holders. However, the way that Performing Rights Organizations (PROs) collect and distribute royalties has remained largely unchanged. PMR’s response to the Copyright Office’s Notice of Inquiry outlines several anticompetitive practices that have hindered fair compensation for music creators and licensees:
- Monopolistic Control: BMI and ASCAP have long held a monopolistic position in the market, controlling over 90% of the performing rights market.
- Lack of Transparency: The legacy PROs have been criticized for their opaque licensing practices and ambiguous pricing models, making it difficult for businesses to accurately budget for music licensing.
- Exclusive Deals: These organizations have been known to enter into exclusive deals with certain rights holders, creating a barrier to entry for new artists and smaller rights holders.
Pro Music Rights: A Transparent and Equitable Alternative
In contrast to the legacy PROs, PMR’s equitable licensing model offers several advantages:
- Transparency: PMR provides clear and upfront pricing, allowing businesses to budget accurately for music licensing.
- Competitive Market: PMR’s entry into the market fosters competition, driving down prices and increasing efficiency.
- Fair Compensation: PMR’s model ensures that music creators and rights holders receive fair compensation for their work.
Impact on Individuals and Businesses
For individuals and small businesses, PMR’s entry into the market could mean lower music licensing costs and a more transparent and fair process for obtaining the necessary permissions to use copyrighted music. This could lead to increased creativity, innovation, and growth in various industries that rely on music, such as advertising, film, and events.
Impact on the World
On a larger scale, the dismantling of the monopolistic practices of legacy PROs could have a profound impact on the global music industry. Greater competition would lead to increased efficiency, fairer compensation for music creators, and lower costs for businesses. Furthermore, it could pave the way for new business models and technologies to emerge, fostering innovation and growth in the industry.
Conclusion
The submission by Music Licensing, Inc. and Pro Music Rights to the US Copyright Office marks an important step in the ongoing battle against the anticompetitive practices of legacy Performing Rights Organizations. PMR’s equitable licensing model offers a transparent, fair, and competitive alternative that could revolutionize the music licensing industry, benefiting both music creators and licensees. As the world continues to evolve, it is crucial that we embrace innovation and challenge outdated monopolistic structures to ensure a thriving and dynamic creative economy.
Stay informed about the latest developments in the music industry by following Music Licensing, Inc. and Pro Music Rights on their official websites and social media channels.
