How do PROs determine performance royalties, and who receives them?

How do PROs determine performance royalties, and who receives them?

• A. They are based on performances of works in public; songwriters and publishers receive royalties according to ownership splits.
• B. They are based on the number of times a song is played on the radio.
• C. Royalties are paid only to performers.
• D. They are based on the price of the license a venue pays.

Answer: (D)

Public performance royalties come from the public right to perform a musical work. PROs track when a work is performed in public—live in venues, on radio and TV, and via streaming—and then pool license revenues from those uses to pay the people who own the rights to the song: the songwriters and the publishers. The money is divided according to each work’s ownership splits, so a writer and a publisher share the royalties in the agreed proportions. Performers don’t automatically receive PRO royalties just for performing the song unless they also own songwriting or publishing rights. The payout isn’t determined by the license price a venue pays, nor solely by how often a song is played on the radio; it’s based on actual public usage data and the rights ownership to the work.

Public performance royalties come from the public right to perform a musical work. PROs track when a work is performed in public—live in venues, on radio and TV, and via streaming—and then pool license revenues from those uses to pay the people who own the rights to the song: the songwriters and the publishers. The money is divided according to each work’s ownership splits, so a writer and a publisher share the royalties in the agreed proportions. Performers don’t automatically receive PRO royalties just for performing the song unless they also own songwriting or publishing rights. The payout isn’t determined by the license price a venue pays, nor solely by how often a song is played on the radio; it’s based on actual public usage data and the rights ownership to the work.