Part 2: Why Is SoundExchange Important?

GPS | News

As a producer or mixer with a royalty on a recorded release, you may be entitled to performance royalties. GPS’ Colin Ramsay takes us through part 2 of our SoundExchange series. Click post to view full video.

Why is SoundExchange important?

Currently, there is no performance right for over-the-air broadcasts. What that means is that terrestrial radio stations, such as KiisFM or WHTZ-FM, are not required to pay sound recording copyright owners for playing their recorded music. So artists and record labels are not compensated when their creative works are used by traditional radio.

Now, The Digital Performance Right in Sound Recordings Act of 1995 and the Digital Millennium Copyright Act of 1998 together granted a performance right for sound recordings. Artists and record labels could finally receive a royalty for the performance of their recordings, for certain digital transmissions. This was, and is, a very significant break through.

Producers and mixers who receive a royalty on a recording are typically paid out of the artist’s share, and so they too are entitled to receive this royalty.

Generally speaking, a performance royalty does not stand behind the recoupment of recording costs – and so these royalties may be immediately payable to the producer or mixer.

SoundExchange has been at the forefront in the fight for performance royalties for both traditional terrestrial radio, and digital transmissions. It is important for record labels, artists and producers or mixers to capitalize on every revenue stream – including this digital performance right.