Licensing of Public Performances of Musical Works

Prior to the 1909 Copyright Act, Congress granted musical works copyright holders the right to control the public performance of their works. The 1909 Act further recognized a public performance right but limited the right only to performances engaged in for profit. Not until 1976 was the for-profit limitation removed.

Despite possessing the right to control public performance, musical work copyright holders had difficulty in collecting licensing fees for performances. This problem was alleviated by the creation of performing rights organizations (PROs). In 1914, a group of nine music business leaders established the American Society of Composers, Authors, and Publishers (ASCAP). ASCAP licenses thousands of musical compositions for public performances under blanket license agreements.35 For business owners, these blanket licenses significantly reduce the transaction costs involved in complying with the requirements of the Copyright Act. For musical work copyright holders, these licenses allow receipt of a share of the royalties that were previously not of much value.

Due to ASCAP’s attempt to raise the royalty rates charged to radio stations, Broadcast Music, Inc. (BMI), became a new PRO in 1939.36 The Society for European Stage Authors and Composers (SESAC), another PRO, was formed in 1930.37 Each PRO can only license public performances of musical works under contract with that PRO.