[Fmpro] PRO demise.... eventually?

[Mark Northam]

Make no mistake - the publishers own the vast majority of copyrights in the
US. The performing right, legally, belongs to the copyright owner
exclusively. If the publishers decided that the performing rights societies
were not working "properly," they could render the societies all but useless
very quickly.

In fact, one very high placed industry source who regularly deals with the
top publishers has admitted that the publishers have a "plan ready on the
shelf" to replace the performing rights organizations with one big
publisher-owned direct licensing organization should it be "needed." In
fact, the publishers already have this for mechanicals with The Harry Fox
Agency...

By running performing rights through the societies, the publishers can lay
off half the cost of administration of these royalties on the writers - more
than half the cost if you consider most publishers avoid collecting foreign
royalties through ASCAP/BMI/SESAC and collect directly from the foreign
societies via subpublishers.  Interesting how writers are denied this
privilege, unless they go through the trouble of joining the foreign
societies directly - writers are not allowed to appoint an agent for
collection purposes in foreign territories.

The recent $1.2m royalty scandal at the Songwriters Guild of America
highlights the need for US writers to know the AT-SOURCE AMOUNT of royalties
they are paid. Without knowing the original amount paid, how can we know
that we we receive on our statements is correct? It creates a situation
where the US societies can take virtually unlimited deductions from our
foreign royalties since those deductions are not disclosed on our statements
and we don't know the original amount paid to us. I cannot think of a more
dangerous situation from an accounting point of view for writers who take
their royalty income seriously.

Best,

Mark Northam


On 9/14/06 6:58 AM, "Les Hurdle" <leshurdle101 at sbcglobal.net> wrote:

> The PRO's are not willing to help it would appear since the Publishers
> who run them have seen fit to insure the eventual demise of these orgs.

---------------------------------
Mark Northam - Publisher
Film Music Magazine
The Professional Voice of Music for Film & TV
http://www.filmmusicmag.com
1-800-774-3700 x702 / (310) 645-9000 x702