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Commissioner outlines concerns about ASCAP/BMI consent decrees, new PROs and streaming-rate rules
Summary
Commissioner Scott Strickland briefed the Music Commission on performance-rights structures, saying legacy PROs operate under court-imposed consent decrees while newer organizations (GMR/CSAC) and Copyright Royalty Board rates complicate payments to artists; he proposed the commission consider sending letters to Congress.
Commissioner Scott Strickland presented a technical overview of how U.S. performance-rights organizations (PROs), publishing companies and federal royalty-setting bodies affect artist pay and licensing practice.
Strickland summarized three linked elements: legacy U.S. PROs ASCAP and BMI operate under long-standing consent decrees that limit how licensing is negotiated; newer companies such as Global Music Rights (GMR) and similar publishers are not under the same decrees and may be able to negotiate higher rates; and the federal Copyright Royalty Board (CRB) and related mechanical-royalty processes set rates that most digital platforms use to calculate payouts.
Why it matters: Strickland argued the combination of constrained legacy PROs, for-profit catalog owners and low federal streaming rates depresses artist income and creates competitive imbalances. He recommended commissioners consider formal advocacy to federal officials to seek changes to consent-decree status and to urge the Copyright Royalty Board to revisit rates.
What Strickland proposed: He said the issue is twofold and recommended two separate outreach steps: a letter to Congress supporting a change in ASCAP/BMI’s consent-decree status (allowing more flexible negotiation) and a second letter urging the Copyright Royalty Board to increase streaming mechanical/CRB rates. “If we do nothing, everything stays as it is,” Strickland said.
Context and technical notes: Strickland explained that ASCAP and BMI operate under judicial consent decrees established decades ago, and that newer firms such as GMR and CSAC can negotiate outside those restraints and leverage large catalogs to demand higher payouts from platforms. He also described the broader royalty pipeline — CRB-set rates flowing into mechanical-license collectives and then distributed to rights holders — as a site where artists receive only a fraction of streaming revenue.
Ending and next steps: Commissioners asked for the draft letter and additional briefing material. Strickland said he prepared a draft and invited commissioners to review it before the commission considers a formal vote or outreach plan at a future meeting.
