Independent Venues Seek Changes to PRO Blanket Licensing Practices

Independent music venues and talent organizations are calling for a reevaluation of the blanket licensing practices used by performing rights organizations (PROs) such as BMI, SESAC, and AllTrack.

Michael Dorf, owner of City Winery and founder of the original Knitting Factory, described receiving letters from PROs when he challenged the blanket licensing system. These letters reportedly threatened fines of up to $150,000 per track if appropriate licenses were not obtained. Dorf, speaking at the annual NIVA conference, characterized these practices as "mafioso, thug-like," deeming the current system an "outdated law" that is being abused.

Ella Yates, senior adviser to the House Judiciary Committee, questioned whether the issue lies with the law itself or with the PROs' leveraging of it. She noted that the requirement for blanket licenses, rather than work-by-work licensing, appears to be a business practice rather than a federal law.

Nathaniel Marro, executive director of NITO, highlighted what he termed a "serious hole in the bucket" regarding blanket licensing. He explained that PRO fees can sometimes be deducted from an artist's earnings. NITO studies in 2025 reportedly found that some artists paid upward of $15,000 in PRO fees while touring, yet received as little as $26 back for performing their own compositions.

Tobi Parks, xBK Live venue owner and panel moderator, acknowledged the immense task PROs face in licensing music across various establishments, from laundromats to venues, to ensure songwriters are compensated. However, the current model of blanket licensing in the U.S. typically involves PROs collecting a percentage of event ticket sales or venue capacity, regardless of whether their specific registered works are played.

According to Billboard, these discussions took place at the NIVA’26 conference in Minneapolis, where the rising costs associated with PRO fees were a significant concern for members.