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PERFORMANCE RIGHTS SOCIETY

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An agency that is an authorized representative for music publishers and songwriters. The main functions of a performance rights society are:

1) To clear the music publisher's and songwriter's names before they are accepted as associate members (this is to prevent the misappropriation of royalties which would occur if names were duplicated),

2) To issue performance licenses to music users for public performances which include both live entertainment and commercial broadcasting. Licensees may include radio stations, network television, MTV, HBO, cable networks, stadiums, arenas, concert halls, nightclubs, hotels, ballrooms, dance studios, exercise studios, restaurants, casinos, malls, skating rinks, in flight entertainment, and other commercial users of background music. Licenses may be used for bulk (blanket), or per program use, and rates may be based on program logs, annual income, seating capacity, specific and unique situations, or other relevant factors pertaining to each individual licensing situation,

3) To negotiate in good faith and attempt to establish reasonable fees (If negotiations are not successful license fees are set by the courts with the burden of proof of reasonableness resting on the performance rights society. Individual court decisions do not affect other previously agreed upon rates.),

4) To collect fees form the performance licensees,

5) To audit licensees when necessary to assure proper payment of fees,

6) To log commercial broadcasts to enable the correct calculation of payment for the music performances,

7) To distribute the proper performance royalty payments, accompanied by a royalty statement, to affiliated music publishers and songwriters,

8) To report to the IRS on Form 1099-MISC the royalties paid out, and

9) To pay the required employment and other taxes to the proper tax agencies.

See Cross-links: PERFORMANCE RIGHTS REPERTORY, PERFORMANCE LICENSE, PERFORMANCE LICENSE FEE, PERFORMANCE LOGGING, CATALOG, PERFORMANCE ROYALTY, MECHANICAL RIGHTS SOCIETY, AGENT, MUSIC PUBLISHER under "Publisher Registration Card," MUSIC under "User of Music," AMERICAN SOCIETY OF COMPOSERS, AUTHORS, AND PUBLISHERS (ASCAP), BROADCAST MUSIC, INC. (BMI), NAME under "Name Registration," COPYRIGHT LAW under "Exclusive Rights," "Perform," and "Public Performance."

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