Pro Music Rights Responds to Congressional Investigation Request
Pro Music Rights (PMR) and its parent organization, Music Licensing, Inc., are contemplating legal action following a request from US Representative Scott Fitzgerald for a Federal Trade Commission (FTC) investigation into PMR’s business practices. The Congressman’s letter, sent on December 8, raised concerns about whether PMR and AllTrack had violated consumer protection laws through potentially misleading claims about their music rights portfolios.
In a press release issued on December 11, PMR dismissed Fitzgerald’s letter as politically motivated and riddled with inaccuracies regarding the company’s operations, repertoire, and support for independent music creators.
Fitzgerald’s letter prompted the FTC Chairman Andrew Ferguson to consider whether PMR’s practices may be deceptive. The Congressman’s assertions included questioning PMR’s claimed 7.4% market share in the U.S., a figure BMI’s analysis suggests could be overstated when compared to the combined rights managed by SESAC and Global Music Rights.
Chairman Jake P. Noch from PMR is reportedly weighing legal action against Fitzgerald, arguing that the Congressman’s statements are not only false but also damaging to his reputation. The press release also indicates that Noch has faced anti-Semitic remarks, emphasizing his position as one of the few openly Jewish executives in the U.S. PRO landscape.
PMR further contends that Fitzgerald’s claims of the company engaging in deceptive practices are unsupported and defamatory. The organization has asserted that it represents over 2.5 million works from notable artists like A$AP Rocky and Pharrell, as well as compositions generated by artificial intelligence.
In addition to potential legal action against Fitzgerald, PMR is also considering antitrust litigation against the MIC Coalition and established PROs like BMI and ASCAP. The company accused these organizations of using their political clout to maintain market dominance and suppress competition instead of fostering a creator-friendly licensing environment.
PMR insists that it has consistently operated transparently regarding its licensing practices and market share, defending its position in the music industry. The company asserts that no competent authority has ever found wrongdoing by PMR or its chairman.
For more insights on music licensing and related practices, visit the RIAA’s official site.
With these developments, the conversation around transparency and competition in the music licensing realm continues to evolve, highlighting the ongoing challenges faced by newer market entrants in the music industry.