The main purpose of copyright protection is to give back creators’ advantages from created work, also the protection must concern about usefulness and fairness of society.
Nevertheless a musical work right is melody or lyric created by composers & authors. If an artist or a band produces and records it into cassette/CD to sell, the original sound of that musical work called “Sound Recording”. If recoding company wants to duplicate that sound recording into cassette/CD and sell it, the record company must ask permission from composers or authors first then pay royalty in return. We called this duplication as a “Mechanical rights”
For Public Performance rights, any establishments that use music as part of its business must ask for permission also. Furthermore requesting to use these rights depends on the practice of that establishment. For example, live performance in restaurant or even concert is considered as musical work publication but if turn on cassette/CD, it is considered as both musical work and sound recording work.
Therefore the Public Performance rights must be managing systematically, because it involve in many kinds of copyright, creators and right owners. Additionally the principle of Public Performance rights licensing is normally done by the Collective Management Organizations (CMOs), which divide into two sides; musical works created by composers & authors and sound recording works created by record labels. The reason is because CMOs supports composers & authors to gather together and take care of own right. Due to composers alone have lesser power to negotiate but together, they definitely have higher chance to maintain the musical work rights of their own.
The Collective Management Organizations in every country have same structure, composers & authors come together to protect their rights and CMOs provide facilities to them. The method of working is to collect Public Performing rights’ royalty and distribute it to members based from usage amounts. In other word, the more usage they have, the more royalty they get.