What Is a Performance Rights Organization (PRO)? How Music Royalties Are Collected and Paid
If you are a songwriter, artist, producer, or business using music, you have likely heard the term Performance Rights Organization (PRO). But what exactly does a PRO do, and why is it so important in the music industry? PROs are responsible for collecting and distributing performance royalties when music is played publicly. These organizations serve as a bridge between music creators and businesses that use music, ensuring that rights holders are compensated for the public use of their work.
What Is a Performance Rights Organization (PRO)?
A Performance Rights Organization (PRO) is an entity that licenses the public performance of musical compositions and collects royalties on behalf of songwriters and publishers. If music is played in public, PROs help ensure that the creators of that music get paid. Public performances include music played in:
radio broadcasts
television programs
streaming platforms
concerts and live events
bars, restaurants, and retail spaces
gyms, hotels, and public venues
Under U.S. copyright law, the owner of a musical composition has the exclusive right to publicly perform that work. PROs administer these rights by law.
Major Performance Rights Organizations in the United States
In the U.S., the primary PROs include:
ASCAP
BMI
SESAC
Each PRO represents a catalog of songs and collects royalties when those songs are publicly performed.
What Are Performance Royalties?
Performance royalties are generated whenever a musical composition is performed publicly. Importantly, these royalties apply to the composition (songwriting)—not the sound recording (master). Examples include:
a song played on the radio
music streamed on Spotify or Apple Music
songs performed live at a concert
background music in a restaurant or store
music used in television broadcasts
Every time a song is performed publicly, it can generate performance royalties.
How PROs Work
PROs operate through a licensing system. PROs issue blanket licenses to businesses that use music, such as: radio stations, streaming services, venues and event organizers, restaurants and retail establishments. These licenses allow the business to play any music within the PRO’s catalog. PROs track music usage through: digital reporting systems, broadcast logs, cue sheets, sampling and data analysis. Once royalties are collected, PROs distribute payments to: songwriters (writer’s share), and publishers (publisher’s share). These payments are typically made on a quarterly basis.
Writer’s Share vs Publisher’s Share
Performance royalties are generally split into two equal portions:
Writer’s Share (50%) → paid directly to the songwriter
Publisher’s Share (50%) → paid to the publisher
If a songwriter does not have a publishing deal, they may need to establish their own publishing entity to collect the full share.
Do Artists Need to Register with a PRO?
Yes—if you are a songwriter or composer. PROs do not automatically know who owns a song. To receive performance royalties, you must: register as a songwriter with a PRO, register your compositions, and ensure your metadata is accurate. Failure to do so can result in lost or unclaimed royalties.
Do Businesses Need a PRO License?
Yes—if they publicly perform music. Businesses that play music in public generally need a license from one or more PROs. This includes: bars and restaurants, gyms and fitness studios, retail stores, event venues and sports arenas. Failure to obtain proper licenses can result in copyright infringement liability, including statutory damages under U.S. law.
PROs vs Other Royalty Organizations
PROs only collect performance royalties for compositions. They do not collect:
mechanical royalties (handled by the Mechanical Licensing Collective)
sound recording performance royalties (collected by SoundExchange for digital uses)
sync licensing fees
Understanding this distinction is important, because a single song can generate multiple revenue streams across different rights.
Why PROs Matter
PROs play a central role in the music ecosystem. Without them, songwriters would struggle to track and collect royalties, businesses would face complex licensing burdens, and the market for public performance rights would be inefficient. In practical terms, PROs ensure that creators are paid when their music is used—and that businesses can legally use music.
When Should You Work with a Music Attorney?
While PRO registration is relatively straightforward, issues often arise around:
ownership splits
publishing agreements
royalty disputes
licensing compliance
audit rights
Working with an experienced music and entertainment attorney can help ensure that your rights are properly protected and that you are maximizing your royalty income.
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*This article is provided for informational purposes only, and does not constitute legal advice, counsel or representation.
