![]() It may be sexy to dive right into the conflict, but it won’t make sense if you don’t understand how PRO members have been able to license their works for the greater half of a century. A Brief Note on the Landscape of PRO Membership Pre-2014 DOJ Review Ultimately what happened after that 2014 request is the crux of the outrage. ![]() Based on technological changes, it’s more than fair to say that the consent decrees were due another update in 2014, which is when ASCAP and BMI requested a review from the DOJ. The last amendments to the BMI decree were in 1994. The last amendments to the ASCAP consent decree were in 2001. So, from time to time reviews of the consent decrees have necessarily occurred, and the occasional amendment is agreed upon. Fancy Technology Comes Out, We’re Not in 1941 AnymoreĪs you’re of course aware, the way we consume music has radically changed since 1941–this is due to advances in technology, such as the CD, the computer, etc. If you want to grind the details of the case history, here’s a link. Hence, at this point, it’s enough to understand by “consent decree” we mean the DOJ came in and said, “Sure, ASCAP and BMI can continue business, but we’re going to set up a few new rules you guys have to play by”. I don’t want to bog you down with legal jargon. The department that handles the government’s role in relation to the decrees is the Department of Justice Antitrust Division (hereinafter, “DOJ”). For these two PROs, that happened in 1941, and what resulted were something called “consent decrees” that set out agreed terms governing certain licensing behaviors by ASCAP and BMI. ![]() When you control that much of any particular market, the government will come in and say, “Hold on, you guys have a monopoly, and that’s against the antitrust laws”. And that number likely used to be a lot closer to 100%. Remember how I mentioned ASCAP and BMI account for about 90% of the market? Well, that’s a significant amount of the market. Why is the Government Involved and What the Heck is a “Consent Decree”? But for the sake of everyone understanding, importantly, the musician is only going to sign up with one PRO. If you’re this person, the good news for you is that I’ve written another guide on this. The answer is a bit more complex because there’s a number of things to consider, but for the sake of what potentially contributes a big chunk of your paycheck the answer is the same–you hop online and sign up with a PRO. Real World, Hypothetical Situation 2: Let’s say you’re an independent musician pumped about your new “E.P.” You’re sure it’s going to be a hit, but how will you get paid if you get millions of plays and become an overnight celebrity? If you want to see what sort of agreement I’m talking about, here’s one. That’s all beyond the scope of this article–just keep in mind this is their job. There’s plenty of information on the internet pertaining to what kind of license you require from the “non-entertainment” side, what the costs are, what your obligations are as the coffee shop owner, etc. The two prominent PROs that account for more than 90% of the music out there are the American Society of Composers, Authors and Publishers ( “ASCAP”) and Broadcast Music, Inc. The job of a PRO is to make your life easy by monitoring all the millions of songs out there getting played, and, when those songs get played, pay the songwriters (or publishers, etc., but let’s keep this straightforward). You hop online and sign up with a number of organizations that in the industry are called ‘Performing Rights Organization(s)’ (or, “PROs”). But how are you going to get that permission? You, being the smart business owner you are, realize that perhaps there is something you need to do in order to not get in trouble for playing that music without permission (and you’d be correct). Let’s also say part of that plan to set the mood is you’re going play music in your coffee shop. Real World, Hypothetical Situation 1: Let’s say you’re not in the music industry, but you have a new business idea to open a coffee shop. The easiest way to explain this is via hypothetical. Who Are “ASCAP” and “BMI” and Why Should I Care? This literature will attempt to demystify exactly what’s happening, and explain the outrage shared by many. But this is stuff you’re going to want to understand. If you tried to glance at an article and found yourself scratching your head about what happened, you’re not alone. Department of Justice that will impact performing rights organizations like ASCAP and BMI”. If you’re a songwriter, publisher, composer, or just someone playing by the rules of licensing in the music industry, you have probably heard at least some “buzz” that goes something like, “There was some significant decision made by the U.S.
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