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SoundExchange: Becoming a member and Receiving Royalties

by: Emerson ManingoEmail Author on January 17, 2012 in Music Publishing

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.

If the artist/producer in the above example has his/her song listed in any of broadcasting mediums monitored by Soundexchange, then the artist/producer can earn royalties from the sound recording performance. SoundExchange requires all artist or sound recording copyright owners to be registered with them to receive royalties.

Easy steps on how to become a member:

1.) Go to this page:

http://soundexchange.com/performer-owner/register-update-my-info/

2.) Register online with Soundexchange. There are a lot of available forms and you can even register online.

SoundExchange Register online

In that registration method, you will need to upload all the required documentation (scanned copy). And then wait for some months until a representative from SoundExchange would reply to you. If there is some lacking documentation, they would make a follow-up email and you will need to comply it.

Features of SoundExchange Membership

To know more about Soundexchange in details; lets break down the topics into several components:

a. Unpaid royalties
b. The Play System

First: Unpaid Royalties

If you are already an established indie artist for years and has some successful songs being streamed online in radio stations, TV services and streaming websites; then you might have some money waiting for you at SoundExchange.If you remember that you have some of your songs streamed before year 2000 (long time ago), you can check it here:

http://soundexchange.com/performer-owner/does-sx-have-money-for-you/

If you are artists, then this is the specific link:

http://soundexchange.com/performer-owner/does-sx-have-money-for-you/unpaid-artists/

You can search using your last name or first name. However if you are a sound copyright holder, you can also check it here:

http://soundexchange.com/performer-owner/does-sx-have-money-for-you/unpaid-scros/

If you see your name, then there is money waiting for you in SoundExchange, become a member (follow the steps in the previous section) and go ahead to claim it.

Second: The Play System

However they have a note: “SRCOs (Sound copyright owners) and artists who have released product since 2001 will not appear on this list.” It means that you need to further dig in the soundexchange database if you are a registered artists as well having your songs registered it too.
In this step, you can use the “plays” system:

http://soundexchange.com/performer-owner/does-sx-have-money-for-you/plays/

You need to sign up before you can search the database, do not worry it will not take too long. If you are still new or you have not made heavy promotions in the past (like putting your song in radio or web casts), then you will not see your name or your song in the database.

Earning Royalties: Some Strategies

This is the most important step in how you could use Soundexchange to the fullest. Read this post on marketing your music online to get some suggestions on how you will be able to penetrate to the target music markets and broadcasting mediums which are monitored by SoundExchange. I think one of the realistic steps is as follows:

Step 1: You need to file two copyright applications:

a. Copyright of song (lyrics and music) (Form PA)
b. Copyright of sound recording (Form SR)

You can do this both online for US-based copyright applications.

http://www.copyright.gov/eco/

However you can also opt to apply using snail mailing method in your country copyright office.

Step 2: Once you get your copyright certificate (as well as your copyright registration number). Apply for the following performing right societies:

a. For monitoring public performance of song copyrights ; you can register in your country public performance right socieities. In US, these are ASCAP, BMI, etc.

b. For monitoring public performance of sound recording copyrights/digital streams, you need to coordinate with SoundExchange.

Step 3: Register all of your catalog songs in those societies above.
Step 4: If you are interested in radio and getting paid, read some information here:
http://www.ehow.com/how_4465357_get-song-played-radio.html

Step 5: If you are interested in online radio streaming, try Jango:

http://www.jango.com/

Step 6: Submit materials to radio.
Step 7: The performing right societies can monitor your work being played; they collect royalties from those stations and pay a share to you.

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