Collective management organisation (CMO) – Collective Management Organisations (CMOs) are entities that license and collect royalties on behalf of multiple rights holders, such as songwriters, composers, and music publishers. They ensure that creators receive fair compensation for the use of their works. CMOs grant licenses for various uses of music, including public performances, broadcasts, and reproductions. They collect royalties from music users (e.g., radio stations, streaming services, venues) and distribute them to rights holders.
There are different types of Collective Management Organisations (CMOs) including:
- Music Licensing Companies (MLCs) that focus on licensing music for public performance and broadcasting.
- Mechanical Rights Organisations (MROs) that handle the collection and distribution of mechanical royalties for the reproduction of music.
- Performers’ Collective Management Organisations (PMOs) that represent performers and collect performance royalties.
- Reproduction Rights Organisations (RROs) that manage rights related to the reproduction of works.
In many smaller European countries, a single CMO might manage both performing rights and mechanical reproduction rights for music authors.
