Pax3 is an evolutionarily conserved transcription factor that plays a major
role in a variety of developmental processes, Mutations in Pax3 lead to se
vere malformations as seen in human Waardenburg syndrome and in the Splotch
mutant mice. The transcriptional activity of Pax3 was recently shown to be
repressed by Daxx whereas the oncogenic fusion protein Pax3-FKHR is unresp
onsive to this repressive action. Here we demonstrate that Daxx-mediated re
pression of Pax3 can be inhibited by the nuclear body (NB)-associated prote
in PML, Interestingly, this suppression of Daxx properties correlates with
its recruitment to the NBs, Factors such as arsenicals and interferons that
enhance NE formation, trigger both the targeting of Daxx to these nuclear
structures and the relief of the repressive activity of Daxx, Conversely, l
ack of structurally intact NBs profoundly impairs Pax3 transcriptional acti
vity, likely by increasing the pool of available nucleoplasmic Daxx, Moreov
er, a PML mutant that can not be modified by the ubiquitin-related SUMO-1 m
odifier is no more able to interact with Daxx, Consistently, such a mutant
fails both to inhibit the Daxx repressing effect on Pax3 and to induce its
accumulation into the NBs, Taken together, these results argue that SUMO-I
modified PML can derepress Pax3 transcriptional activity through sequestrat
ion of the Daxx repressor into the NBs and suggest a role for these nuclear
structures in the transcriptional control by Pax proteins.