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What Is ASCAO And How Does It Affect The Music Industry?

1695 Words7 Pages
After a song has been written, released, and enjoyed by the masses, songwriters receive compensation for their work through their Performing Rights Organizations (“PROs”). PROs negotiate license agreements for the use of songs, collect any royalties the songs generate, and distribute those royalties back to the songwriters. Today there are three major PROs: the American Society of Composers and Music Publishers (“ASCAP”), Broadcast Music, Inc. (“BMI”) and SESAC, Inc. (“SESAC”). Currently, ASCAP, BMI and SESAC license practically every copyrighted musical work in the United States. In 1941, the Department of Justice (“DOJ”) began investigating ASCAP and BMI for allegedly monopolizing “…the market for performance rights for copyrighted songs played on the radio.” Faced with the threat of federal prosecution, ASCAP and BMI entered into government consent decrees establishing various licensing requirements and restrictions including but not limited to…(LIST OUT) Since their foundation in 1941, these consent decrees have been updated numerous time for to keep up with past technological advances and changes in the music industry, the last being in 2001 when the DOJ added/changed etc…(Add Source).
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