Pureplay/Small Pureplay
1Eligible Services
First, ensure your service is eligible to operate under the statutory license. Begin by reviewing the U.S. Copyright Act, 17 U.S.C., §§ 112 and 114 to familiarize yourself with the applicable requirements that would govern your service. For more information about statutory licensing, please review the Licensing 101 section on our website.
Under these rates and terms , a ‘Pureplay Webcaster’ is a webcaster whose primary business is to transmit sound recordings under the statutory license, and not to sell or promote any other service or product.
2Terms
View all rates and terms in the Federal Register (74 Fed. Reg. 34796, July 17, 2009). Standard non-subscription PurePlay webcasters who elect these terms will pay either a per-performance rate for each track played, or 25% of their total revenue whichever is greater. Subscription, bundled and syndicated services pay a per-performance rate for each track played. An annual minimum fee of $25,000 is required, which is applied against the service’s total annual liability. Services who elect these termswill be required to supply census reporting in accordance with these terms. For more information about reporting and payment requirements, see “How Do I Pay”.
3Rates
Commercial webcasters (defined as those earning more than $1.25 million in annual revenues) pay the greater of these rates:
Option 1
Penny Rates
| Year | Rate Per Performance | Per Aggregate Tuning Hour* |
|---|---|---|
| 2006 | $0.00080 | 1.2¢ |
| 2007 | $0.00084 | 1.26¢ |
| 2008 | $0.00088 | 1.32¢ |
| 2009 | $0.00093 | |
| 2010 | $0.00097 | |
| 2011 | $0.00102 | |
| 2012 | $0.00110 | |
| 2013 | $0.00120 | |
| 2014 | $0.00130 | |
| 2015 | $0.00140 | |
Option 2
25% of gross revenues.
*In the years where specified, a usage-based royalty either computed on a per-performance basis or on an aggregate tuning hour basis (amount of airplay).
For small webcasters (defined as those earning $1.25 million or less in total revenues with a cap on music streamed), there is the paying the greater of a percentage of revenue or percentage of expenses. For 2009-2014, the percentage of revenue for Small Pureplay webcasters is 12 percent of the first $250,000 in U.S. gross revenue and 14 percent of U.S. gross revenue above $250,000. For 2006-2008, retroactive payments of 10 percent will be made for the first $250,000 in U.S. gross revenue and 12 percent of U.S. gross revenue above $250,000. In either case the percentage of expenses is 7 percent. The agreement also provides for a transitional rate for small webcasters that exceed the $1.25 million revenue cap.
4Reporting and Recordkeeping Requirements
Services electing these terms generally must provide census reporting (actual recordings played and total listenership) and retain server logs for at least four years. These requirements enable SoundExchange to more accurately process royalty payments to artists and copyright holders. For more information, see our “Reporting Requirements” page.
5Election
Services must elect annually at the beginning of each year by filing a Notice of Election for Purplay Webcaster or a Nice of Election for Small Pureplay Webcaster.
Eligible webcasters wishing to elect into these terms must provide notice to the Copyright Royalty Board of your intent to operate under the statutory license by submitting a Notice of Use of Sound Recordings Under Statutory License (“Notice of Use”). This form must be submitted directly to the copyright office, not to SoundExchange, and need only be filed once. The Notice of Use must be accompanied by a $25 filing fee and should be submitted to the Copyright Royalty Board at the address listed on the form. Please note that the Copyright Royalty Board WILL NOT confirm receipt of form and fee. If you wish to receive confirmation of receipt, you will need to send via certified mail, return receipt requested.
6Compliance
Services which have opted in must provide all minimum fees, monthly statements of account and payments, and reports of use to SoundExchange as required by law. For guidelines and forms, see “How Do I Pay?”