SoundExchange: Becoming a member and Receiving Royalties
I know of a performance right society called “SoundExchange” which I read first from a book. The unique thing about this organization is that it will collect royalties to artist and sound recording copyright owners.
This works similarly with ASCAP, BMI and SESAC that collects royalties for songwriters and music publishers. As a background, take note that the music you hear from the radio and in your mp3 players is copyrightable in two forms:
a.) Copyright of music and lyrics
b.) Copyright of Sound Recording
Sound Recording Copyright Ownership and SoundExchange
It starts with the songwriter/musician creating the song and assigning lyrics/melodies. The songwriters themselves are the first owner of the work thus they possess the copyright of music and lyrics. When the songwriters sign-up with a music publishers; there is a transfer of copyright ownership from the writers to the publishers.
What will happen next is that these music publishers shop their songs to recording labels, recording producers or recording artists that are looking for songs for their album/single project. Supposing a certain artist/producer would license a specific song from the music publisher. The artist would then start recording the tracks (vocals, guitars, bass, piano, drums, etc.) until and fully complete sound recording of the song has been made.
This sound recording of the song is not anymore owned by the songwriter or the music publisher but this is owned by the creator which is the artist/producer in this example. The artist producer can then register the song sound recording to copyright office for official registration.
Since the artist/producer would be using this sound recording of the song in marketing and promotions. These sound recording can end up in the playlist of various digital radios, internet radios, etc.
Organizations like SoundExchange monitor the performance of sound recording copyright played in different mediums such as in radio and in the Internet. The monitored performance can then be reported back to their members and then be paid with royalties. This royalty money comes from the SoundExchange licensee which would legally perform sound recordings in any of the discussed broadcasting mediums.
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