Performing rights
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Performing rights are the right to perform music in public. It is part of copyright law and demands payment to the music’s composer/lyricist and publisher (with the royalties generally split 50/50 between the two) when a business uses music in a public performance. Examples of public performances are broadcast and cable television, radio, concerts, nightclubs, restaurants etc. When music is performed by a business they must obtain a license to use that music and compensate the author (composer and lyricist) and publisher.
In the United States, broadcasters can pay for their use of music in one of two ways: they can obtain permission/license directly from the music’s copyright owner (usually the publisher), or they can obtain a license from ASCAP and BMI to use all of the music in their repertories. ASCAP and BMI along with the much smaller SESAC are the three performing rights societies in the U.S. and once they receive payment from the broadcasters they are responsible for compensating the music authors and publisher. Nearly every composer, songwriter, lyricist and publisher is a member of a performing rights society and the income received from them is a major source of their income.