How To Claim Performance Royalties in the United States

Performance royalties are one of many revenue streams available to musicians and songwriters. When your music is played in public, whether on the radio, in a bar, at a concert, or even in a commercial, performance royalties are generated. These royalties compensate creators for the public use of their music, but collecting all the royalties you are owed is not always trivial.

To collect performance royalties in the United States, you need to register with a Performing Rights Organization (PRO) such as ASCAP, BMI, or SESAC. These organizations track when and where your music is played publicly (such as on the radio, in venues, or online), collect royalties from the entities who your music, and distribute those royalties to you. By becoming a member of a PRO and linking your music to your account, you ensure that any public performances of your songs will generate royalties that will be paid to you.

The Global Landscape of Performance Royalties

Performance royalties are generated whenever music is publicly performed, broadcast, or played. These royalties are typically divided into two categories:

1. Public Performance Royalties – These are earned whenever music is played in public, including in venues like clubs, restaurants, theaters, stadiums, and on the radio or television.
2. Synchronization Royalties – While not strictly “performance” royalties, these are earned when music is synced to visual media, such as in film, television, or advertisements.

Performance royalties are generally collected by Performing Rights Organizations (PROs). These organizations exist in nearly every country and serve as intermediaries between music creators (songwriters, composers, and publishers) and those who wish to publicly perform their music (radio stations, clubs, venues, broadcasters, etc.).

The process works as follows:

• Songwriters, composers, and publishers register with a PRO in their home country.
• Venues, broadcasters, and digital platforms that wish to play music publicly acquire a license from the PRO to do so.
• The PRO tracks how often a piece of music is played and collects the royalties generated.
• The royalties are then distributed to the registered members (songwriters, composers, and publishers) based on the usage data.

How Performance Royalties Work in the United States

In the U.S., several Performing Rights Organizations (PROs) handle the collection and distribution of performance royalties. The three main PROs are:

• ASCAP (American Society of Composers, Authors, and Publishers)
• BMI (Broadcast Music, Inc.)
• SESAC (Society of European Stage Authors and Composers)

If you are a U.S.-based artist, you’ll typically need to affiliate with one of these organizations to ensure that your performance royalties are collected when your music is used.

Registering with a PRO

To claim performance royalties in the U.S., the first step is to register with a PRO. This process generally involves the following steps:

• Choose a PRO: ASCAP, BMI, and SESAC are the primary PROs in the U.S. Each organization has its advantages, but the choice often comes down to personal preference and the specifics of the PRO’s offerings. SESAC is a smaller, invite-only organization, whereas ASCAP and BMI are open to all musicians.
• Sign up as a member: You’ll need to provide personal details and the names of the songs you’ve written, as well as any publishers you work with (if applicable). Both songwriters and publishers can register separately or together.
• Link your works: After registration, you will need to link the songs you’ve written to your PRO account. This will enable the organization to track performances of those works and ensure that royalties are collected on your behalf.

How Royalties Are Collected and Distributed

Once you’re registered with a Performing Rights Organization (PRO) in the United States, they begin to collect performance royalties whenever your music is publicly played. These royalties are typically earned from music performances in a wide range of settings, including live concerts, radio broadcasts, TV shows, streaming services, and public venues like restaurants, clubs, and stores.

Here’s how the process works:

• Licensing and Royalty Collection: PROs enter into licensing agreements with music users (e.g., radio stations, venues, streaming platforms) who wish to play your music publicly. These agreements require the music users to pay a fee in exchange for the right to use your music. This fee is based on factors like the type of usage, the size of the venue, or the number of listeners or streams.
• Performance Tracking: PROs track when and where your music is performed through a combination of reporting from music users (such as radio stations or live venues), automatic tracking technologies (like cue sheets for TV shows or playlists for streaming platforms), and surveys of various music usage. For example, if a song is played on the radio, the radio station reports this play to the PRO, and if your song is streamed on a platform like Pandora, the streaming service provides data to the PRO.
• Royalty Distribution: After collecting the performance fees from music users, the PRO distributes the royalties to the songwriters, composers, and publishers. The amount you receive depends on the frequency and type of performances, as well as your specific share of the song. PROs use complex formulas to calculate each creator’s share of the royalties, which often depends on factors like the number of plays, the popularity of the song, and the type of license the PRO holds with the music user. Typically, PROs pay royalties on a quarterly basis, although the exact timing may vary.

In short, your PRO acts as an intermediary, ensuring that when your music is publicly performed, the right fees are collected from music users and properly distributed to you as a member.

International Performance Royalties for U.S.-Based Artists

While your performance royalties in the U.S. are collected and distributed by domestic PROs, what happens when your music is performed outside the U.S.?

Fortunately, PROs have international relationships with similar organizations around the world. For example, ASCAP and BMI both have reciprocal agreements with PROs in countries all over the globe. This means that when your music is performed in another country, the local PRO collects the royalties on your behalf and passes them along to your U.S.-based PRO. Your U.S. PRO then sends the royalties to you.

How to Ensure You Receive International Royalties

• Register with your U.S. PRO: If you’re a U.S.-based artist, it’s essential to register your music with a domestic PRO, as they will handle both your U.S. and international royalties.
• Check for reciprocal agreements: Make sure your PRO has reciprocal agreements with the PROs in the countries where your music is being performed. Most of the major PROs, like ASCAP, BMI, and SESAC, have agreements with organizations in Europe, Canada, Australia, and many other regions.
• Monitor your international royalties: It’s a good idea to track the international performances of your music. Many PROs offer online portals where you can check royalty statements and see where your music is being performed globally.
• Partner with a global publisher or administrator: If you have a significant international presence, you might consider partnering with a music publisher or a global music administration service. These entities can help ensure your music is being properly licensed and that you receive the maximum amount of royalties from international markets.

Conclusion

Performance royalties are a significant source of income for musicians and songwriters. Claiming them requires a bit of effort, particularly when it comes to navigating different countries and PROs, but U.S.-based artists can easily claim their domestic royalties by registering with one of the three main PROs—ASCAP, BMI, or SESAC.