Examining the new registration policies for AI-assisted works and the immense challenges Performance Rights Organizations face in tracking royalties.
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Performance Rights Organizations (PROs) and Neighboring Rights Organizations are the gatekeepers of music compensation, responsible for tracking millions of songs across thousands of global platforms and distributing trillions of royalties annually. The sudden rise of AI music—which generates immense volume and creates complex, layered authorship—has forced these administrative giants to rapidly rewrite their fundamental rules.
In North America, the three major collecting societies—**ASCAP, BMI, and SoundExchange**—have adopted aligned policies to integrate AI, but the technological hurdles remain enormous.
It's crucial to distinguish between the two types of organizations handling music rights, as they manage royalties for different copyrights:
| Organization Type | Example | What They Track |
|---|---|---|
| **Performance Rights Org. (PRO)** | **ASCAP, BMI** | **Musical Composition** (The underlying song/lyrics). They pay the **Songwriter** and **Publisher** for public performances (radio, TV, live venues, streaming). |
| **Neighboring Rights Org.** | **SoundExchange** | **Sound Recording** (The master recording). They pay the **Recording Artist**, **Non-Featured Performers**, and **Record Label** for non-interactive digital transmissions (SiriusXM, Pandora, cable music channels). |
The policies for AI primarily concern the **Musical Composition** (ASCAP/BMI) but the challenges affect all royalty streams. [4]
In late 2025, ASCAP and BMI aligned their policies to clarify what types of AI-assisted music they will officially register and license. Their stance is a direct reflection of the U.S. Copyright Office's principle that copyright requires **human authorship**.
Impact on Royalties: For works that are accepted, the PROs have clarified that they will not be compensated differently from fully human-created songs. Royalties will flow normally through the standard distribution system, valuing the creator's contribution. [3]
Even with clear registration policies, the AI boom presents massive operational problems for tracking music performances and calculating royalties:
AI-assisted works may have complex authorship splits (e.g., Composer A, Lyricist B, AI Model C). Current systems rely on accurate **metadata** (titles, IPI numbers, writer shares) to match the performance data to the registered work. AI's ability to create and upload content rapidly under false or inconsistent metadata tags creates vast data fragmentation, leading to royalties being classified as "unmatched" and potentially withheld. [4]
The flood of AI-generated music enables massive **streaming fraud**. Bad actors use AI to generate thousands of unique songs and use bots to stream each song a small number of times. [5]
Beyond policy alignment, the PROs have taken a highly active role in shaping the legal environment through advocacy, emphasizing two core principles:
PROs have firmly stated that the mass ingestion of copyrighted musical works by AI companies for training without permission or compensation **"is not fair use, but theft."** This position backs the ongoing lawsuits against generative AI platforms and supports the core mandate of the **TRAIN Act** to compel transparency. [2]
ASCAP and BMI have lobbied heavily in Washington D.C., supporting the creation of new laws like the **NO FAKES Act** (to protect identity) and the **TRAIN Act** (to enforce copyright transparency). They view federal legislation as the only reliable path to establishing an even playing field for human creators globally. [1]
The PROs are the essential bridge between the legal world of copyright and the commercial reality of payment. By accepting partially AI-generated works, they are adapting to the modern creator's workflow. However, the future stability of the royalty system depends on their ability to integrate advanced AI-driven tools—like digital fingerprinting and the potential Attribution Share Model—to overcome the challenges of content saturation and sophisticated streaming fraud.