SoundExchange and the DMCA

In 1998 the Digital Millenium Copyright Act (DMCA) was signed, granting a performance right in the digital transmission of sound recordings.  Simply put, the copyright holders of the performance of the musical work were not entitled to a royalty for the digital transmission of this performance.  This meant more money to be paid by terrestrial radio if they streamed.

The Recording Industry Association of America (RIAA) was initially formed in 1952 to standardize practices of vinyl recordings.  They also participate in the collective rights management of sound recordings.  They represent the distributors of the recording industry and consist of record labels and distributors. They also certify gold and platinum albums and singles in the U.S.

Sound Exchange initially an unincorporated division of the RIAA, spun off in 2003 as an independent organization.  It is a non profit performance rights organization that collects statutory royalties from satellite radio, Internet radio and similar platforms for streaming sound recordings.  The digital performance royalties are collected on the behalf of recording artists, master rights owners (record labels) and independent artists who record and own their own masters.

The Copyright Arbitration Royalty Panel was a part of the United States Congress and was involved in making decisions regarding copyright royalties.  It was created at the suggestion of the Register of Copyrights.  Its primary purpose was to make decisions involving adjustments of copyright royalty rates as well as terms and payments of royalties that fall under copyright law.  CARP was phased out by the Copyright Royalty and Distribution Reform Act of 2004.  Under the new system created by the reform act, three Copyright Royalty Judges establish the conditions and rates for copyright statutory licenses.

The fees for Sound Exchange explained next week…

Disclaimer: The information is presented for informational purposes, you should consult with legal council or adviser for more detailed information.

Comments are closed.