Small Webcaster/Microcaster (Rates)
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 requirements for statutory licensing. For more information about statutory licensing, please review the Licensing 101 section on our website.
Under these rates and terms, eligible services include “Small Webcasters”, defined as commercial non-subscription webcasters with annual revenues totaling not more than $1.25 million.
2Terms
View all rates and terms in the Federal Register (74 Fed. Reg. 34796, July 17, 2009). Small webcasters who elect these rates and terms will pay a percentage of their total revenue, or a percentage of their total expenses, whichever is greater. An annual minimum fee of $2,000 or $5,000 is required, which is applied against the service’s total annual liability. Services who opt in will be required to supply monthly census reporting in accordance with regulations.
Special accommodations for “Microcasters” (defined as services with less than 18,027 aggregate tuning hours per year, annual revenues of less than $5000, and annual expenses of $10,000) include a $500 minimum fee, and an additional $100 proxy fee in lieu of reporting requirements.
For more information about reporting and payment requirements, see “How Do I Pay”.
3Rates
Small webcasters pay the greater of either
7% of annual expenses
-10% of annual Gross Revenues up to $250,000
-12% of annual Gross Revenues over $250,000
Small Webcaster Minimum Fees: Minimum fees are $2,000 for services expected to earn less than $50,000 in annual Gross Revenues, and $5,000 for services expected to earn greater than $50,000 in Gross Revenues. Monthly statements of account are required.
Microcasters Minimum Fees: Microcasters (as defined above) are only required to pay an annual minimum fee of $500. Microcasters need only submit the annual statement of account form.
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4Reporting and Recordkeeping Requirements
Services electing these rates and terms generally must provide monthly census reporting (actual recordings played and total listenership) within 45 days of the end of the relevant month. These requirements enable SoundExchange to most accurately process royalty payments to artists and copyright holders. For more information, please see the “Reporting Requirements” page.
Microcasters will pay an annual $100 “proxy fee” in lieu of submitting monthly census reporting, and need only submit the annual Statement of Account form.
5Opting In
Services must elect annually at the beginning of each year by filing a Notice of Election for Small Webcaster or Notice of Election for Microcaster no later than Jan 31.
Eligible webcasters wishing to operate under these rates and 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 elected these rates and terms must provide all minimum fees, monthly statements of account and payments, and reports of use to SoundExchange as required. For guidelines and forms, see “How Do I Pay?”