In consult with the Texas Music Office, Texas Governor Greg Abbott today sent a letter to U.S. Attorney General Loretta Lynch urging her to reconsider The United States Department of Justice’s proposed changes to the Performance Rights Organization (PRO) licensing model. In 2015, the Department of Justice announced they would require PROs such as Broadcast Music, Inc. (BMI) and the American Society of ComposersA, Authors & Publishers (ASCAP) to require 100 percent licensing rather than allowing PROs to negotiate licensing deals based on their market shares. Governor Abbott objected to the Department of Justice’s decision, which runs counter to longstanding industry expectations, and urged Attorney General Lynch to protect the mechanisms that allow musicians to make a living and create wealth.
“This drastic change in course will have severe consequences for music artists and the music industry as a whole,” Governor Abbott writes in the letter. “The DOJ’s conclusion will inhibit collaboration between music artists, upend longstanding practices within the music industry and further reduce royalty payments to music artists.”
The proposed change would:
- Discourage songwriters from collaborating with artists under different PROs
- Force PROs to build new accounting tools, disrupting partnerships throughout the music industry
- Increase administrative costs for PROs and music artists
To read Governor Abbott’s letter, click here: http://gov.texas.gov/…/press-offi…/DOJ_TMOLetter08292016.pdf.
“This drastic change in course will have severe consequences for music artists and the music industry as a whole.” - Texas Governor Greg Abbott
Gov. Abbott letter to US Department of Justice
The Texas Music Office (TMO) is a state-funded business promotion office and information clearinghouse for the Texas music industry. The TMO assists more than 15,000 individual clients each year, thereby meeting its legislative mandate: “Sec. 485.004. Promotion; Duties. (a) The office shall promote the development of the music industry in the state by informing members of that industry and the public about the resources available in the state for music production.” The TMO is the sister office to the Texas Film Commission, both of which are within the Office of the Governor’s Economic Development and Tourism Division.