Item 5 Supporting Document — original pdf

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Statement of the Austin Music Commission Submitted to the U.S. Copyright Office Re: Notice of Inquiry on Issues Related to Performing Rights Organizations Docket No. 2025-1 DRAFT May 5, 2025 Dear Register Perlmutter and Members of Congress, On behalf of the Austin Music Commission, we appreciate the opportunity to submit our perspectives regarding the evolving landscape of Performing Rights Organizations (PROs) and their impact on our vibrant music community in Austin, Texas. Background Austin, known as the "Live Music Capital of the World," thrives on a rich tapestry of musical talent, encompassing songwriters, performers, venues, and a diverse array of music industry professionals. Our city's cultural and economic vitality is deeply intertwined with the health of its music ecosystem. Concerns Regarding PRO Proliferation and Practices We acknowledge the historical role of PROs in simplifying the licensing process for public performances of musical works. However, recent developments have raised concerns: 1. 2. 3. Proliferation of PROs: The increase in the number of PROs has introduced complexities for venues and businesses, leading to confusion over licensing requirements and potential legal vulnerabilities (U.S. Copyright Office) Transparency in Licensing and Royalty Distribution: A lack of comprehensive disclosure regarding the works covered by PRO licenses and the methodologies for royalty distribution undermines trust and fairness in the system (U.S. Copyright Office) Impact on Local Artists: Independent and emerging artists in Austin often face challenges in receiving equitable compensation, as current distribution practices may favor more prominent rights holders. Recommendations To address these issues, we propose the following: • • • Standardization of Licensing Practices: Implementing uniform guidelines across PROs can reduce confusion and ensure venues can comply without undue burden. Enhanced Transparency: Mandating clear disclosure of licensed works and detailed royalty distribution reports will foster accountability and allow artists to verify their earnings.(U.S. Copyright Office) Support for Independent Artists: Establishing mechanisms to ensure fair compensation for all artists, regardless of their commercial stature, will promote a more equitable music industry. What’s completely missing from mandates regarding PROs: 1. Racial & Genre Equity in Royalty Distribution What's missing: No current mandate requires PROs to report demographic or genre data on who is getting paid—and who is not. This leads to systemic underpayment or invisibility for BIPOC artists, particularly in genres like hip-hop, Latin, gospel, or regional roots music. Recommendation: • • Urge Congress to commission or require PROs to conduct equity audits. Request a breakdown of royalty distribution by genre, race/ethnicity, gender, and region. 2. Local Venue Protections and Fair Licensing Models What's missing: Small venues and community events are penalized by one-size-fits-all licensing fees, even when the actual music performed doesn't match the PRO's catalog. Recommendation: • • Create scaled licensing models or exemptions for nonprofit and local venues. Mandate a "pay-per-use" model or a local use credit, especially when showcasing local artists. 3. Black Box Royalties Reform What's missing: “Unclaimed” or unmatched royalties (often called black box royalties) frequently go to major rights holders by default—leaving indie artists, especially from underrepresented communities, out. Recommendation: • • Push for a public, searchable database to identify unclaimed royalties. Enact a local artist priority fund that reallocates a portion of black box royalties to underrepresented artists. 4. Education & Accessibility for Independent Creators What's missing: Many artists in Austin—particularly younger, self-released, or marginalized voices— lack clear guidance on how to register with PROs or protect their rights. Recommendation: • • Fund or require public education campaigns, perhaps through city/state partnership grants. Mandate language and disability access standards across all PRO registration systems. 5. Data Accountability and Audit Rights What's missing: Artists have limited access to track where and when their music is played—even though this data is critical to fair pay. Recommendation: • • Require PROs to provide user-friendly reporting tools to all rights holders. Give artists third-party audit rights over royalty data and distribution methods. Conclusion The Austin Music Commission is committed to fostering a thriving music environment that supports artists, venues, and the broader community. We urge the U.S. Copyright Office and Congress to consider these recommendations to enhance the efficacy and fairness of PRO operations. Thank you for your attention to these matters. Sincerely, [Your Name] Chair, Austin Music Commission [Contact Information]