A radio station must then file a Notice of Election with Sound Exchange and pay their minimum fee. Their fees are based on a per performance basis. A performance is defined as one person listening to one song. Each January 1, a minimum yearly fee of $500 is required to be submitted.
n 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.