On February 19th, SoundExchange presented a webinar, “Q1Y10 Webinar for Labels and Sound Recording Copyright Owners,” to address the issues which affect how independent labels are paid by SoundExchange. During the event, we asked the 200+ participants to ask us their questions about SoundExchange and the specifics of what we do. Below are those questions, verbatim (we’ve removed names and contact information for privacy), and responses from our team.
View the entire webinar:
1) Are foreign artists and labels represented by reciprocal arrangements with their local societies and you, or should they join Sound Ex direct?
If you are an artist based outside the US, and you are affiliated with a collection society outside the US, click here to see if that group has a reciprocal agreement with SoundExchange. If your current collection society is on this list, please contact that society directly, so they can place a claim with SoundExchange on your behalf. If your collection society is NOT on the list, please contact SoundExchange. See also questions 29 and 31.
If you are an artist based outside the US, and you are NOT affiliated with a collection society outside the US, you should either register with your relevant in-country society or register directly with SoundExchange using the forms marked ‘non-US artist.’
2) Can labels submit on behalf of artists/producers?
Artists are paid directly by SoundExchange. Only an artist, or the legal representative of an artist, can submit that registration. Please encourage the artists you work with to register on their own.
3) Can labels periodically submit a catalog of artist and songs to match to your suspense data?
Yes. Having your entire catalogue on file is good for research purposes or to evaluate overlapping claims on repertoire. We can also use your data to check for missing information that may not have been captured in the reports from music-using services.
4) Is there a statute of limitation on collection? Can we still collect after 6 years?
Although SoundExchange is allowed under the statute to dissolve unclaimed funds and redistribute them to existing registrants, our board has repeatedly voted not to do this. Through reserve funds and held balances, an artist or copyright owner registering today may still claim all royalties dating back to our first collection in 1996.
5) Is there a way for us to submit metadata to you to be able to match against the data you have?
You can use our PLAYS database to research your repertoire and submit metadata to repertoire@soundexchange.com. Please contact Shane German with questions at sgerman AT soundexchange DOT com.
6) Should artists pay out Producer Royalties from SoundExchange? Received a LOD from a Producer of our album. Or is this just Label duty? Not associated with the “sale” of the album.
SoundExchange will direct a portion of artist royalties to the Producer if the artist completes a SoundExchange LOD (Letter of Direction) clearly identifying the applicable tracks for payment and the appropriate split between the artist and Producer. Please note that our policy permits us to accept LODs and pay third parties, “only where the third party payee is an individual or entity who was part of the creative process in creating the sound recording on which the featured artist performs (e.g. producers, mixers, re-mixers, engineers, etc.) and publicly credited or recognized as such or if that individual or entity is of the nature or position that is usual or customary as a royalty participant on sound recordings.”
7) Must Labels do “Direct Deposit”?
Labels may, but are not required to, sign up for direct deposit payments. This is faster, environmentally friendly, and cuts down on the risks of lost, returned and uncashed checks. While we strongly recommend it, we do not require that anyone sign up for direct payments.
8 ) How long after submitting our registration should it take to be set up in your system and begin receiving royalties?
We aim for 120 working days, provided that there are no complications or unforeseen needs concerning paperwork. Since we pay quarterly, a registration completed in February would likely be paid out in our June distribution.
9) For name variations, do you need infinite detail (e.g. Co vs. Co. vs. Company)?
Please provide as much detail as possible. The example you cite (Co vs. Co. vs. Company) is considered reasonable and will help us to associate your royalties with your account.
10) You had a note about getting statements in Excel vs. PDF, but it was not discussed. Is this possible?
Yes, this is possible, though it is a service provided only to SoundExchange members. Email Shane German at sgerman AT soundexchange DOT com to request this change.
11) What if there are multiple iterations of a label’s name?
Please report these iterations as variations on the registration to help us associate your money with your account. Do not register each iteration as a separate entity unless the change in name represents a change in legal status or holdings.
12) Do we report song titles as repertoire?
Yes, please, and associated label names, artist names and ISRC numbers, if available. The more information we receive, the easier it is for Account Services to associate all royalties with your account.
13) What if we own the master outright and the artist has waived collection rights. Can I collect 100%?
No. The ratio of payments is not changed by the artist’s choice to waive collections on a track. Artists are paid directly by SoundExchange, regardless of any private agreement. If the artist wishes to receive his check from SoundExchange and later transfer those funds to a label, that must be done after the receipt of the check.
If artists wish to waive royalty collections with the music-using service, the artist may do so, in which case the royalties never come to SoundExchange and cannot be claimed by services.
14) My label has had various songs on promo only and erg music (music promotional services) how would i claim such as i need them to expose our work?
Please refer to the original agreement made with the promotional services. If your label maintained copyright ownership on the repertoire, you are still entitled to the royalties from the repertoire as the Sound Recording Copyright Owner (SRCO). Please use the PLAYS database to follow up on these recordings, to ensure that licensed works are being credited to you, and not to a marketing or compilation label. If we need more information or if there is any type of overlapping claim, we would contact you.
15) Why does it take so long to process a registration, especially if it was submitted on-line?
We are making strides every day toward greater efficiencies. However, due to the huge number of registrations received, and the amount of by-hand intervention generally required to confirm tax information and make an account payable, we prefer to estimate high and have most registrants be pleasantly surprised, rather than the few be disappointed by an unforeseen delay.
16) if a track is licensed for a compilation does the master owner get paid or does the licensee get paid
See answer to question 14.
17) Roughly how long does it take your staff to make a correction through PLAYS?
Depending on the circumstances of the correction (e.g. whether it is immediately obvious that the correction is a mere typo, vs. a possible double-claim) correction times range from one week to six weeks. Changes will be reflected on upcoming royalty statements, even if the record is not updated in PLAYS itself.
18) If a label is registered with SoundExchange, but one of the label’s artists does not register, would the label receive royalties anyway?
The label will receive its portion of the royalties for the track whether the artist is registered or not, as long as the label has claimed that track. Please don’t let this keep you from advocating registration to your artists.
19) Does Sound Ex deal with the same payments as AARC?
No. The Alliance of Artists and Recording Companies (AARC) collects royalties for home taping and rental use. This represents a completely separate revenue stream from SoundExchange, and we highly recommend you register with both organizations so as not to miss out on royalties due to you.
20) Is there a cost to register with sound exchange and if so, is there a difference in cost between artist and label?
Registration with and membership in SoundExchange are 100% free for both artists and copyright holders. SoundExchange takes a small administrative fee to cover the costs of distributing funds – in 2009 it was about 8%.
21) Do we have to have an SRCO contract in order to use PLAYS to correct bad information?
No. Any artist or Sound Recording Copyright Owner (SRCO) registered with SoundExchange may submit corrections to PLAYS. Please note that signing up for PLAYS does NOT register you to receive payments from SoundExchange – please register for both.
22) How do we report label name variations (including label catalog numbers that appear on our CD spines) to S/E?
Send a list via email to sgerman@soundexchange.com
23) How is the royalty percentage between artist and label (the “split”) calculated?
The performance royalty percentages distributed by SoundExchange are set forth in federal law. 50% of earned royalties go to the copyright holder (or label) and 45% goes directly to the featured artist. 5% is paid to and distributed by the AFM/AFTRA fund in California which compensates backup singers and session musicians (www.raroyalties.org).
24) I own my own label and my masters and I am also the featured artist on my recordings. I have been receiving payments to my label, [redacted] Music, but have never received payment as an artist. How can I get credit as both a label and an artist?
An artist who owns his own masters must register as both an SRCO and an artist. Just fill out an artist form on SoundExchange’s online registration site. If you are not yet registered as an SRCO, you can simply fill out the “I’m Both” section when registering for the first time.
25) How do you submit a re-recording of a song? We have re-recorded a song so we own the master of this song but not the master of the original.
When reporting repertoire to SoundExchange, please send us the name of the artist, title of the song, album and year, and if at all possible, the ISRC number. It will also be helpful to list any differences like different band members or any other distinguishing factors to make it easier to make a distinction between the re-recorded song and the original, as they may be reported by music services.
26) What period is currently being collected? And what periods are included in the PLAYS database?
Periods currently being collected for vary by the kind of service, but the collection periods are reflected on each royalty statements. Regardless of what is currently being collected for, an artist or Sound Recording Copyright Owner (SRCO) registering today can collect back royalties to1996, and will receive checks whenever they’re owed going forward. The PLAYS database is updated after each distribution – approximately quarterly.
27) Does SoundExchange collect royalties from websites owned by the U.S. companies? How about overseas? Can a foreign artist register with SoundExchange with an overseas bank account?
SoundExchange collects royalties from services that transmit sound recording into or within the United States, wherever those services are located. We also pay recording artists who sign up with us, regardless of where they’re from. Foreign artists may register directly with SoundExchange, or may register with one of our partner organizations, if they live in a country covered by our neighboring rights agreements (see that list here). If registering as a non-US artist, please use the W-8 tax form, and use a payment address, as direct deposits to overseas banks are not yet available. See also questions 1 and 31.
28) I’m an artist that now owns the publishing company as well as the label. Do I put the (P) sign to be displayed on the product in front of the publishing name or in front of the label name?
As a technical matter the (P) line should only be used to designate the owner of the master, that is, the sound recording copyright owner. SoundExchange has no authorization to take into account or to compensate for publishing or songwriting copyrights. To be compensated for publishing rights, please register with ASCAP, BMI, or SESAC for questions about publishing rights.
29) Please explain how ‘neighboring rights’ comes into play here. Does this impact the flow of royalties? My co. was under the impression that that the PPL was collecting on our behalf. Is this true? If this is the case, would PPL be collecting the artist or label’s share?
PPL is SoundExchange’s sister organization in the United Kingdom. If a label or Sound Recording Copyright Owner (SRCO) is based in the UK, that entity should be registered with PPL, who will make claims from SoundExchange to cover the label’s American royalty earnings. If you are not based in the UK, or a member of another of our partner organizations (see that list here), register with SoundExchange directly to receive your royalties. See also, questions 1 and 29.
30) When registering with SE, one of my artists said that they were asked to include their Registration Code on each piece of registration paperwork submitted. However they claim they did not receive that number while filling out the application forms. Is there a way to get this number before submitting forms that are supposed to include them?
The “registration confirmation number” can be found on the first page of the confirmation email received after online registration (look below the first two paragraphs of basic information to find the Registration Confirmation Number). If a registrant continues to have difficulty finding the number, they may call Account Services at 202-640-5858 for assistance in recovering it and in making updates.
31) How does one get paid if the labels are not signed to any of theses digital trackers? Such as SoundExchange but the artist is?
SoundExchange does not invoice services, nor do we rely on digital tracking services. As long as a service is registered with SoundExchange, the label will be compensated for use of their tracks on digital services.
32) What is the standard royalty amount?
Royalty rates vary by listenership and type of service. To see the royalty rates and reporting requirements for the various service types, visit the services section of the SoundExchange website here.
33) Are there sound exchange royalties associated with live on-air performances?
It depends. If the performance is not recorded, then it does not become a ‘sound recording’ and therefore is not related to SoundExchange payments. If it is recorded and/or reused, and then released, it should be reported by the streaming service as a performance of a sound recording — just like any other. If the service reports this performance, it will be paid in the normal course of distributions.
34) We are currently monitoring many thousand internet radio stations and have observed many problems related to appropriate song tagging. is there a process where the PLAYS database be made available in order for orgs like us to be able to normalize data where we can?
We agree that the lack of a centralized database is a problem for many facets of the industry. We are working with other PROs and the music community to create an international database which will help all PROs better process repertoire data. At the moment, though, PLAYS is only related to SoundExchange records.
35) If a label does not see one of our titles in PLAYS that we know has been licensed and is receiving airplay on satellite radio, what are our options?
PLAYS is a reflection of what is reported to SoundExchange by services. If the track you are seeking has not been reported, we encourage you to search variations, and search by label and artist to see if the track has been reported under an incorrect name. If by ‘licensed’ you mean that the track has been issued with a direct license for payment (or non-payment) by a label directly to the service, it will not appear, as SoundExchange’s administration of the statutory license is an alternative to direct licensing. If all else fails, e-mail SoundExchange at account_services@soundexchange.com for help in locating your tracks.
36) How can you search on PLAYS for large amount of songs without having to type each one in individually?
Search by label or artist to find a large number of tracks associated with those items. If you are unable to correct all tracks in PLAYS, you may provide excel documents of repertoire to SoundExchange for corrections by emailing them to sgerman@soundexchange.com.
37) On my statement it shows the term “Unassociated Labels”. What would this mean?
This notation indicates that your repertoire was reported without label information. However, with data “clean up” exercises and research, SoundExchange was able to determine that the repertoire belonged to you. The royalty has been credited to your account, but may appear with the original notation.
38) How do ISRC’s on individual tracks play into royalty collection and streaming AND if it does, when the license term ends or begins how do you determine and fairly distribute the royalty. Thank you.
Some service providers track the ISRC and others do not. It currently is not mandatory for the ISRC to be captured in the reporting that music-using services send us. As far as time frames regarding contracts or agreements, it is imperative that copyright holders report that to us so that we can make any necessary adjustments.
39) Would it be helpful to submit copies of BMI reports for SoundExchange to update artist / label info?
Any sound recording repertoire and recording artist information you can provide is helpful.
40) What is the breakout of SoundExchange revenue? Satellite vs. Webcasting vs. Other?
We can’t be very specific about the payments of music-using services (it’s their private financial data, after all). Overall, a majority of payments come from satellite radio services, webcasters represent a rapidly-growing segment of payments, and other license types make up a very significant minority.
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