Navigating the Complexities of Registering with Two PROs and Collecting Royalties Worldwide
Navigating the world of music royalties and registration can be intricate, especially when dealing with Performing Rights Organizations (PROs). Many songwriters consider the option of being registered with two PROs to increase their reach and ensure comprehensive global royalty collection. However, this practice can lead to several complications, ranging from conflicts in representation to legal issues and complications in licensing. In this article, we will explore the potential issues and the recommended best practices for ensuring smooth royalty collection.
Conflicts in Representation
The most common issue with registering with two PROs is the conflict in representation. Each PRO typically has exclusive rights to represent your works in the territories they cover. If both PROs are set to collect royalties for the same work, this can create uncertainty and confusion. It is unclear which organization is the rightful collector for those royalties, often leading to disputes and inefficiencies in the revenue collection process.
Duplicate Payments and Complications in Accounting
Another significant downside of having multiple PROs is the potential for receiving duplicate payments for the same usage of your music. This can complicate accounting and potentially lead to legal disputes. Ensuring that payment systems are streamlined and avoiding overlaps is a critical aspect of managing your music royalties successfully.
Legal Issues
Most PROs have strict agreements that prohibit members from being represented by multiple organizations for the same rights. Registering with two PROs can violate these agreements, resulting in penalties, loss of membership, or even legal action. These agreements are put in place to maintain order and fairness in the music industry, and breaching them can have severe consequences.
Complications in Licensing
If someone wants to license your music, they might face challenges in knowing which PRO to contact, especially if the music is licensed globally. This can complicate the licensing process, potentially leading to missed opportunities and a slower process overall. Coordinating with multiple PROs can also slow down the licensing process and make it more cumbersome for all parties involved.
Royalties Distribution Issues
One of the most significant challenges of having multiple PROs is the difficulty in tracking where the money comes from and ensuring timely and accurate payouts. If both PROs collect royalties, it may be challenging to determine exactly where each payment should go, leading to delays or errors in the distribution process.
Best Practices for Royalty Collection
To avoid these complications, it is best to choose one PRO to represent your works and ensure they have the appropriate agreements in place for global royalty collection. The chosen PRO should have the necessary expertise and a well-established network of international partners to ensure comprehensive and accurate royalties collection.
For those considering switching PROs, it is essential to check the terms of your current agreement and follow proper procedures for termination and registration with a new organization. The process typically involves providing a letter of intent within a specified timeframe to avoid contract renewal. Songwriters must also adhere to geographic restrictions regarding PRO affiliation to ensure they are only registered in one country or territory at a time.
Changing your PRO affiliation requires a time commitment, typically two years, during which you cannot leave the PRO without proper notice. Communicating your intention in writing and adhering to the specified time frame is crucial to avoid automatic renewal of your contract.
Finally, having a publishing deal can significantly simplify the process of managing multiple PROs. A publisher can handle the submission and distribution of your songs to every relevant PRO around the world, ensuring that all your song’s income is accurately and efficiently collected and distributed to you. This streamlined process allows you to focus on your creativity while your publisher ensures your royalties are collected and distributed.