[1]

WHAT IS SOUND EXCHANGE AND WHAT DOES IT DO?

We will take a look at the company, its history, how it functions, and how it benefits recording artists.

HOW SOUND EXCHANGE IS DIFFERENT

We will explain how Sound Exchange differs from the traditional Performance Rights Organization

PERFORMANCE ROYALTIES FOR ARTISTS?

We will explain the new developments that have led to the addition of performance royalties for recording artists.

Sound Exchange: The New Performance Rights Organization

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VYRAL MUSIC

Vyral University: sound exchange: the new PRO

SO I HAVE A PRO ALREADY, WHY DO I NEED SOUND EXCHANGEThere have been new developments regarding performance royalties that your should know about. If you are a recording artist or musician and you do not know about Sound Exchange, it’s time to wise up....

Sound Exchange is the newest of the performance rights organization. So why all the fuss? Well

until 1995, the only people who received performance royalties were songwriters and musicians. That

all changed with the passing of The Digital Performance in Sound Recordings Act of 1995. What that

stated is that performers and owners of copyrights are to be paid for the use of their works in digital

transmissions. Basically, anytime a copyrighted work is used in digital format (such as webcast,

internet radio, etc.) the user is required to pay a performance royalty to both the copyright holder of

the musical composition( songwriter/publisher) and the owner of the sound recording (performer/

recording company/producer).

Sound Exchange has been appointed by the US Congress as the sole administrator and collection

agency for these royalty payments. In the same way that ASCAP, BMI, and SESAC collect

performance royalties for songwriters and publishers, Sound Exchange collects performance royalties

for recording artists and others who own SR (sound recording) copyrights, such as record labels. As

of now, these royalties are only available for digital performances but in the near future, we may see

new avenues arise for public performance royalties in radio, TV, and film.

Sound Exchange: The New PRO

Yes,

Now recording

artists get

royalties

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WHO PAYS?

SRCO’s now get paid!!

SRCO’s and sound exchange

What Types of licenses does Sound Exchange Administer -

Sound Exchange is responsible for the collection and distribution

of royalties from SRCO’s.

What is a SRCO - It is a person or recording company that owns

the master recordings of a particular copyright.

Who Does Sound Exchange Collect From? - They collect from

digital cable, satellite TV channels such as Music Choice and

Muzak, Web casters, Satellite Radio and more.

What is not included? - As of right now, this only includes

digital transmissions, so there are no performance royalties from

radio, TV, etc.

Who should register? - Anyone that is a recording artist, or

plans on being one in the future. This group also includes anyone

that own’s a SRCO in general, meaning record labels, producers,

etc.

AND MORE...

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The Digital Performance Right in Sound Recordings Act of 1995 (DPRA)

Until 1995, there was no such thing as performance royalties for SRCO’s. That all changed with the

passing of two landmark bills. Here is a little info on the history of these changes, and what the law

states as of today.

A BRIEF OVERVIEW OF THE NEW LAWS

In 1995, the United States passed a copyright law granting owners of SR (sound recording)

copyrights a exclusive right for digital performances of their works publicly. What this meant is that

SRCO’s would now be obligated to receive performance royalties for digital performances and

retransmissions of their copyrights.

The Digital Millennium Copyright Act (DMCA)In 1996, shortly after the passing of the DPRA, this law was passed. This act did a number of things

to strengthen the laws protecting intellectual property in the digital realm, (not just music). It stated that

among other things, “webcasters” must now pay licensing fees to SRCO’s for the use of their material,

as well as making any violations of this act a punishable offense, (i.e. crime).

How these new laws affect you as a SRCO?Basically, these two laws created a brand new revenue stream for holder’s of SR Copyrights. It

meant that anyone wishing to use your performances (sound recordings) in the digital realm

(websites, internet radio, satellite radio, etc...) would have to pay a license fee for the usage of these

works.

The passing of these laws, along with the US Copyright Office appointing SoundExchange to be

the exclusive collector and distributor of these royalties, meant that just as songwriters and publishers

used Performance Rights Organizations such as ASCAP, SESAC, and BMI to collect performance

royalties on their behalf, SRCO’s (sound recording owners) would now be able to use a non-profit

collection agency to administer licenses and collect royalties on their behalf, (SoundExchange).

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Sound Exchange.Com Website

Let’s start taking a look at the Sound Exchange website. When you first navigate to

SoundExchange.com, you will be taken to the home page which looks something like this. (as of this

article’s creation of course)

Top Navigation BarOn the top “nav” bar, you will see a few different options for navigating through the site. Let’s

discuss those briefly first, before moving forward.

Notice that a short video is featured on the home screen. This video is supposed to tell a little

about Sound Exchange, but at the time of this article, the video was not working due to some sort of

malfunction with the hosting server.

Also, on the right sidebar, you will notice a stats widget has been placed at the very top, letting

you know a little more about the volume of performers and SRCO’s that have been registered, as well

as a nice “Royalties Paid” figure, (which to me seems a little distasteful for a site such as this).

These are links for registration

The “About” page has information on

the company

“Blog” and “The Latest” display news and press related stories

“FAQ” page is helpful for learning more about Sound

Exchange

“Calendar” page lists events and seminars and

“Extras” contains logo’s and other media and social

network links

You can use this to search the site

Click this logo will take you “home”

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Is Sound Exchange a scam?In a word, NO. The new laws passed by the U.S.

Congress have made performance royalties available to

SRCO’s. Sound Exchange is an appointed agency

collecting these royalties on behalf of all copyright

holders.

I already have a PRO, should i register...Yes. ASCAP, BMI, and SESAC only collect performance royalties for publishers and songwriters.

If you are a SR copyright holder, then you should register with Sound Exchange in addition to

registering with your PRO of choice.

Who Runs Sound Exchange?Sound Exchange is governed by the Board of Directors which is comprised of one representative

from each of the major label groups, (EMI, Sony, UMG, and Warner) as well as 2 representatives from

indie labels (Tommy Boy Entertainment & Matador Records). The board also consists of an executive

from the RIAA (Recording Industry Association of America) and artists and artists representatives

from AFTRA, AFM, The Recording Academy, Music Managers Forum - US, and the Future of Music

Coalition.

What Do I Do Next?The next step is to find out if you have any royalties waiting for you, and then register with Sound

Exchange. You can read all about that in, “Sound Exchange: The Registration Process”.

SOUND EXCHANGE: SUMMARYWhat you need to know about the newest Performance Rights Organization...

Do You own any SR

Copyrights?

OTHER ARTICLES

• Sound Exchange: The

Registration Process

• Performance Rights

Organizations

• How Your Music Makes Money

Copyright Registration

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