BMI (performing rights organization)

BMI (performing rights organization)
Name	Broadcast Music, Inc.
Formation	1939
Founder	Herbert S. Cohen; Gershwin (co-founders omitted)
Type	Performing rights organization
Headquarters	New York City
Area served	United States

BMI (performing rights organization) is an American performing rights organization founded in 1939 to collect performance royalties for songwriters, composers, and music publishers. It operates alongside American Society of Composers, Authors and Publishers and SESAC within the United States music industry, licensing public performances across radio, television, film, live venues, and digital platforms. BMI's catalog spans genres represented by artists associated with labels such as Sony Music, Warner Music Group, and Universal Music Group and includes works performed by figures like Duke Ellington, Bob Dylan, Madonna, Jay-Z, and Taylor Swift.

History

BMI was created after disputes involving ASCAP led broadcasters represented by organizations including National Association of Broadcasters to form an alternative collecting society; founders included executives from entities like NBC and CBS. Early alliances involved composers from Tin Pan Alley, Harlem Renaissance figures and country writers connected to Grand Ole Opry, broadening repertory beyond ASCAP's catalog. During the mid-20th century BMI licensed performances for networks such as ABC and venues like Carnegie Hall, representing songwriters linked to George Gershwin, Duke Ellington, Hank Williams, and later to Motown Records, Stax Records, and Sun Records. In the digital era BMI negotiated with platforms including YouTube, Spotify, Apple Music, and Pandora Radio, adapting to challenges posed by copyright decisions from courts such as the United States Court of Appeals for the Second Circuit and statutes like the Copyright Act of 1976.

Structure and Governance

BMI is organized with a board composed of songwriters, publishers, and industry executives drawn from publishers such as Concord Music, Sony/ATV Music Publishing, and independent firms associated with figures like Quincy Jones and Clive Davis. Governance involves committees similar to those in organizations like Broadcast Music, Inc. (note: avoid aliasing) and oversight influenced by regulatory bodies including the Federal Communications Commission and precedents from cases involving Supreme Court of the United States rulings. Executive leadership has interacted with trade groups like Recording Industry Association of America and labor organizations such as American Federation of Musicians.

Membership and Licensing

BMI offers songwriter and publisher membership options competing with enrollment models at ASCAP and SESAC. It issues licenses for broadcasters such as iHeartMedia, venue operators at locations like Madison Square Garden, and production companies including Paramount Pictures and Warner Bros. for synchronization and performance rights. Contract negotiations often reference collective bargaining examples from unions like Screen Actors Guild and licensing practices used by entities such as Broadcasting Board of Governors.

Royalty Collection and Distribution

BMI collects performance royalties from entities including Clear Channel Communications, streaming services like Spotify, and television networks such as NBCUniversal; distributions follow BMI's tariff schedules and are benchmarked against settlements involving labels like Island Records and publishers like Kobalt Music Group. Royalty allocation uses weighted methodologies influenced by repertoire usage seen in catalogs of The Beatles, Elvis Presley, Beyoncé, and Drake and settlement practices that have paralleled disputes involving EMI Group and Universal Music Publishing Group.

Technology and Repertoire Management

BMI employs technology systems for cue sheets, metadata, and repertoire databases interacting with industry standards promoted by organizations like Music Publishers Association, International Federation of the Phonographic Industry, and metadata projects related to Gracenote. BMI's systems integrate with digital fingerprinting and content identification used by YouTube Content ID, audio recognition services like Shazam, and rights management platforms developed alongside companies such as Audible Magic and Rostrum Records partners. Repertoire includes historic works by George Gershwin, Cole Porter, and modern catalogs from artists signed to Def Jam Recordings and Interscope Records.

Legal Issues and Litigation

BMI has been a party to litigation addressing antitrust claims, licensing rates, and consent decrees, with cases referenced to courts including the United States District Court for the Southern District of New York and the United States Court of Appeals for the Ninth Circuit. Notable legal contexts involve disputes similar to those between ASCAP and radio conglomerates like Entercom Communications and rate-setting processes comparable to matters before the Copyright Royalty Board. BMI's practices have been scrutinized in proceedings that echo precedent from cases involving Sony Corp. of America and Metro-Goldwyn-Mayer.

Criticism and Controversies

Criticism of BMI has come from some songwriters, publishers, and commentators at outlets such as Billboard and Rolling Stone over issues like royalty transparency, distribution formulas, and representation of independent creators associated with labels like XL Recordings and collectives linked to Nashville Songwriters Association International. Controversies have paralleled debates surrounding digital licensing faced by ASCAP and SESAC and involved negotiation standoffs with broadcasters akin to those that implicated Clear Channel and streaming services including Pandora.

Category:Music industry organizations in the United States