Performing Rights Organizations (PRO) such as ASCAP and BMI collect performing rights royalties from broadcasters on behalf of both publishers and composers. The PRO then disperse the royalties to it’s members according to a number of variables including the length of time the song was used, where it was broadcast, when it was broadcast, etc.
Composers who provide royalty free music to sites such as this, rely on performance royalties to be compensated for their work.
The performances licensed by PROs include network television, cable tv, radio programming, for-pay movie channels, use in nightclubs, stores, and restaurants, performances at sporting events, etc. They include programs, infomercials, and commercials.
Performing Rights Organizations track the use of their member’s music through Cue Sheets. Cue Sheets are simply a form filled out by a producer and submitted to each PRO who has a member represented on the cue sheet.
The fees paid to the PRO are typically paid by the broadcaster (tv station, cable station) and are not the responsibility of the producer. In rare exceptions (HGTV, ESPN), a broadcaster may opt to not license the music through a PRO and defer that responsibility back to the producer. In these cases, the producer would need to negotiate a Direct Performance License directly with the music library. If you are doing work for broadcast, it is wise to make sure the broadcaster you are working with has a license with the proper performing rights organization. Otherwise, you may find yourself with some unexpected expenses, or worse (legal issues) down the road.
Rights such as Synchronization Rights, Master Rights, and Mechanical Rights are handled directly by the production music library
Click here for a comprehensive list of worldwide Performing Rights Organizations.