Switching Performing Rights Organizations: A Guide for Songwriters

Introduction: Understanding the Impact of Switching Performing Rights Organizations

Before you go switching Performing Rights Organizations (PRO) or Collective Management Organizations (CMO), it’s crucial to understand the impact of this significant decision. Switching your PRO can negatively affect your royalty payments and global registrations for years.

Why You Need a PRO or CMO

Every songwriter needs a PRO or CMO to collect royalties from various public performances of their music. These organizations track plays of your songs on the radio, TV, live performances, or online streams. They then collect fees from these venues and pay you, the songwriter, and your publisher, if applicable.

In the US, major PROs include ASCAP, BMI, and SESAC. Canada has SOCAN, while Europe features organizations like AKM, KODA, SACEM, and PRS. Selecting the right PRO or CMO is a big decision. Switching later can be complex and may disrupt your royalty payments. Therefore, it’s essential to choose wisely and stick with your decision.

The Impact of Switching Your PRO/CMO on Your Royalties

Switching PROs or CMOs might seem like a way to increase earnings, but it often leads to significant delays in royalty payments and potential loss of revenue. Each organization has different methods for collecting royalties from streaming services, broadcast TV, or radio plays. Some rely on actual usage data, others use polling methods, and some have thresholds before payouts occur. These differences can significantly impact your income, especially if you depend on these royalties.

Music supervisors use PRO databases to identify composition rights. Delays in updating your affiliation might result in missed sync requests. Moreover, if a producer submits a cue sheet with outdated PRO information, you may not receive the revenue unless you address the issue.

Switching also means facing delays in receiving performance royalties. Your new PRO will need to re-register your compositions and update payee information. Since most organizations operate quarterly, this process could take a year or more, potentially holding or losing your royalties.

Additional Considerations

• Membership Terms: When you joined your current PRO/CMO, you agreed to specific membership terms. These might include a minimum term before you can switch. You might only be able to leave during specific windows each year.
• Delays in Updating Song Registrations: Your old PRO will continue to license your registered songs until the transfer is complete, even if you switch quickly.
• Membership Fees: Some PROs/CMOs charge membership fees. Moving to a new society means you’ll need to cover their fees.
• International Collection: Payments from international societies take longer to collect than domestic earnings. After leaving your current PRO, your new PRO must register you with international databases, but some international payments might still be sent to your old PRO.

Advances & Adjustments

• Advances: If you received an advance from your PRO, you must wait until it is fully recouped or your term ends before switching.
• Unrecouped Adjustments: If you were overpaid royalties and are repaying from incoming royalties, you might not be able to leave until the adjustment is fully recouped.

Steps to Resign from Your PRO/CMO

1. Understand Resignation Rules: Each PRO has different resignation requirements. For example:
   • USA: ASCAP allows resignation requests on their platform, while BMI requires a certified letter.
   • UK: PRS requires a hand-signed letter.
   • France: SACEM requires three months’ notice.
2. Contact Your Current PRO: Confirm the resignation process and gather all necessary details from your current PRO.
3. Plan for Transition: Choose your new PRO and plan your finances during the transition. Be ready for possible delays.
4. Notify Your Publisher: Inform your publisher about the change. If you are a Woolyvard client, fill out the Support Form on your client dashboard to notify their team and minimize delays in royalty payments.

Switching Performing Rights Organizations is a significant decision. Carefully research and consider all factors before making the change.

Want to keep up with Woolyvard for frequent music and publishing updates?

Follow us @Woolyvard
Subscribe to our Newsletter
Visit the Woolyvard Blog