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Artists often find themselves at the mercy of middlemen, such as music distributors and PROs, which can lead to unfair practices, including taking a hefty cut of earnings and presenting unconscionable contracts to new artists who lack bargaining power. This raises crucial questions about the management of royalties.
Congress is particularly concerned about the need for oversight among these middlemen, as many operate without regulatory frameworks. The distinction between for-profit and non-profit organizations further complicates the situation, with for-profit entities potentially prioritizing their own financial interests over those of the artists they represent.