Understanding the Collective Management Organization (CMO)
A Collective Management Organization (CMO) is a non-profit entity responsible for managing and distributing publishing royalties. These organizations track and collect royalties on behalf of songwriters and publishers, ensuring they receive fair compensation for their work. Unlike Performing Rights Organizations (PROs) that focus mainly on performance royalties, CMOs handle both performance and mechanical royalties.
What Defines a CMO?
To qualify as a CMO, an organization must:
- Be owned and operated by the creators it represents.
- Welcome all creators within the rights category it manages.
- Conduct its business fairly and non-discriminatorily.
- Represent a wide range of usages and exploitations.
- Operate under legal authorization as a CMO where applicable.
Examples of Collective Management Organizations
Several notable CMOs operate globally, including:
- ABRAMUS in Brazil
- GEMA in Germany
- SACEM in France
- SUISA in Switzerland
In addition to CMOs, Rights Administrator Entities (RAEs) also collect performance and mechanical royalties. Examples of RAEs include:
- ICE Services
- Music Reports (MRI)
Scenario: How CMOs Assist Songwriters
Consider a songwriter in the United Kingdom who performs cover songs in pubs and plans to release an album. To ensure you collect royalties for these performances and album sales, you should affiliate with a CMO. In the U.K., PRS/MCPS handles these responsibilities. By joining PRS/MCPS, you can ensure your songs are tracked properly, and you’ll receive the royalties you’re entitled to.
To learn more about CMOs and other music publishing terms, visit our Glossary for additional articles and resources.
