What is a CMO?

What is a CMO?

• A. An electronic database of songs.
• B. A Collective Management Organisation that administers neighbouring rights for recording rights holders and performers.
• C. A government licensing agency.
• D. A music publishing association.

Answer: (B)

Collective Management Organizations license and collect royalties for neighbouring rights, representing recording rights holders (like labels) and performers. They handle licensing with users who play or broadcast sound recordings—radio, TV, venues, streaming services—track usage, collect payments, and distribute royalties to members. This role is distinct from a government licensing agency and from a music publishing association, which deal with different rights (the composition, not the recording). So the description that a CMO administers neighbouring rights for recording rights holders and performers is the correct understanding.

Collective Management Organizations license and collect royalties for neighbouring rights, representing recording rights holders (like labels) and performers. They handle licensing with users who play or broadcast sound recordings—radio, TV, venues, streaming services—track usage, collect payments, and distribute royalties to members. This role is distinct from a government licensing agency and from a music publishing association, which deal with different rights (the composition, not the recording). So the description that a CMO administers neighbouring rights for recording rights holders and performers is the correct understanding.