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Update On Webcasting Royalty Rates

By Steve Gordon
September 02, 2004

Part Two of Two

Part One covered statutory licenses for sound recordings and performing rights licensing for musical compositions for webcasting purposes.

Originally a division of the RIAA, SoundExchange is now an independent, nonprofit performance-rights entity jointly controlled by artists and sound-recording copyright owners through an 18-member board of directors with nine artist representatives and nine copyright owner representatives. Artists receive 50% of royalties earned for each performance. The featured artist receives 45% of the total artist share. Non-featured artists receive a 5% compulsory rate established by law. The recording copyright owner, which may or may not be the actual label, receives the other 50%.

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