Music licensing 101: What is a performing rights organization?

PRO, licensing, synchronization, royalties — learning the language of music publishing can be daunting. But it’s important to take advantage of all of the revenue streams available to you as a musician and songwriter.

As a musician you want to have your music played everywhere, and often! But how do you make sure that you’re properly compensated when your music is played to the public, whether that’s through media (TV, radio) or in public spaces (bars, restaurants, etc.)?

You can’t be expected to monitor each play, and might not even know about many of them — so how do you get paid? This is the role of performing rights organizations (PROs).

PROs play a vital role in collecting royalties on behalf of songwriters, composers, and music publishers. They are crucial for musicians.

In this guide, we'll break down the role of performing rights organizations and how they collect royalties for your music, as well as looking over a few frequently asked questions.

What is a performing rights organization (PRO)?

PROs are agencies responsible for ensuring that songwriters, composers, and publishers (rights holders) get paid when their music is publicly performed.

They collect royalties on behalf of music rights holders, gathering public performance royalties that are generated whenever a song is played on the radio (AM/FM, streaming, or satellite), in public venues (bars, theaters, stadiums, etc.), on TV, or in advertisements. The PRO then distributes these royalties to the songwriters and publishers who own the rights of the music that was played.

Who are the PROs?

The largest PROs in the U.S. are ASCAP, BMI, and SESAC. Global Music Rights is a smaller but rapidly-growing choice. While each of these organizations represent different artists and business practices to attract musicians and licensees, they each collect public performance royalties as defined by the U.S. Copyright Act, ensuring fair compensation for the use of music.

For Canadian musicians, SOCAN is the primary PRO. If you are a SOCAN member or client and have registered your works with SOCAN, they will collect ALL performing and/or reproduction rights royalties owed to you.

If you’re outside of the U.S. or Canada, you might find your organization within this sampling of worldwide PROs:

United Kingdom: PRS for Music
Germany: GEMA
France: SACEM
Sweden: STIM
Australia: APRA AMCOS
South Africa: SAMRO

These organizations collect performance royalties from public performances of music (live, radio, TV, digital streaming) in their respective territories. Many PROs are also part of global networks, so they can collect royalties for performances in countries outside their home territory.

How do PROs get paid?

Any business or organization that plays music publicly — whether it's a restaurant, concert venue, sports arena, retail store, airport, hospital, etc. (you get the idea!) — must obtain a license from a PRO to legally broadcast that music. These licensing fees are paid to the PRO, which then disburses the funds as royalties to the songwriters and rights holders (publishing companies).

Licensing has become more complex as music consumption habits have shifted in recent years. These changes from traditional music forms to digital platforms (like streaming services, social media, and video-sharing sites) have led to a need for more nuanced music licensing. In response, most PROs offer new “blanket licensing” deals that cover a variety of public performance scenarios, both online and offline. Digital platforms and streaming services contribute heavily to public performance royalties.

What about non-public performances?

When songs are streamed digitally on a non-interactive digital radio service like Pandora or SiriusXM, or on a cable music channel (like Music Choice), SoundExchange collects digital public performance royalties.

These are collected for works covered by the Digital Performance Right in Sound Recording Act of 1995 and Digital Millennium Copyright Act of 1998.

SoundExchange does not handle royalties for interactive streaming services like Spotify, Apple Music, and other digital platforms where users select the music they’re hearing — these are handled by labels and distributors (such as DistroKid).

Frequently Asked Questions

Note: the answers listed below contain general information, and don’t qualify as legal advice. If you have specific questions about publishing rights and royalties, please contact your regional PRO for advice.

If I record a song that was written by someone else, but they do not perform on the recording, and this song is played at a public event, who receives royalties for this song?

In most cases, the original songwriter receives the public performance royalties via their PRO. Typically, the performer does not receive royalties unless they contributed to writing the song (or they hold the publishing rights to the original song).

If I record a song that was written by someone else, but they do not perform on the recording, and this song is played on a Pandora/SiriusXM station, who receives royalties for this song?

In most cases, songwriters do not get paid SoundExchange digital royalties unless they also perform on the recording. The songwriter in this case would, however, receive public performance royalties from their PRO.

What if I want to cover a song?

To legally record and release a cover song, you'll need a mechanical license, typically obtained through the Harry Fox Agency. This license allows you to release your version of the song, with royalties going to the original rights holders.

Do I really need a traditional PRO and SoundExchange?

Yes. Artists need to be registered with both a PRO to collect public performance royalties, and with SoundExchange to receive digital performance royalties. With the ever-evolving music industry landscape, signing up with both is the best way to ensure you're collecting all your due royalties from different revenue streams.

What about radio plays?

If your song is played on terrestrial radio (AM/FM stations), royalties are paid through your PRO.

When songs are streamed digitally on a non-interactive digital radio service like Pandora or SiriusXM, or on a cable music channel (like Music Choice), SoundExchange collects digital public performance royalties.

The upshot

By registering with a PRO, musicians can maximize their income by tapping into revenue streams — sometimes royalties they might not be aware of. For example, if your song gets played at a live venue, you may not even know it happened — but the venue will be required to pay licensing fees to a PRO, and through them you'll receive your share of royalties.

In addition to protecting your rights and ensuring that you receive your due compensation, many PROs offer additional benefits such as grants, networking opportunities, and workshops to support the careers of their members — resources that can help you grow professionally and expand your industry connections.