SoundExchange, the leading organization responsible for collecting and distributing digital performance royalties on behalf of recording artists and master rights owners, is speaking out against a recent ruling that has barred them from collecting royalties through litigation. In a recent statement, SoundExchange has called the ruling “erroneous” and is taking action to rectify the situation.
According to SoundExchange, the ruling in question was made by the Copyright Royalty Board (CRB) in December of 2018. The CRB is a panel of judges appointed by the U.S. Library of Congress to set royalty rates for digital music services. In their ruling, the CRB set the rates for webcasters and digital radio services, but also included a provision that bars SoundExchange from collecting royalties through litigation.
This means that SoundExchange is unable to pursue legal action against services that fail to pay the required royalties. This ruling, according to SoundExchange, goes against the intent of the Copyright Act and undermines the ability of artists and rights owners to protect their intellectual property.
In response to the ruling, SoundExchange has filed a petition with the CRB, asking them to reconsider their decision. In their petition, SoundExchange argues that the provision barring them from collecting royalties through litigation is not only “erroneous,” but also unconstitutional.
“SoundExchange is committed to protecting the rights of artists and rights owners,” said Michael Huppe, CEO of SoundExchange. “This ruling goes against the very purpose of our organization and hinders our ability to carry out our mission.”
SoundExchange was established in 2003 as a result of the Digital Millennium Copyright Act (DMCA), which required digital music services to pay royalties for the use of sound recordings. Since then, SoundExchange has collected over $6 billion in digital performance royalties and distributed them to over 150,000 artists and rights owners.
The organization also plays a crucial role in advocating for fair compensation for artists and ensuring that their rights are protected in the ever-evolving digital music landscape. With the rise of streaming services and digital radio, SoundExchange’s work has become more important than ever.
In addition to their role in collecting and distributing royalties, SoundExchange also works closely with artists and rights owners to educate them about their rights and ensure they receive the full value of their music. Through partnerships with major labels, independent artists, and digital music services, SoundExchange has established itself as a trusted and vital player in the music industry.
The ruling by the CRB not only hinders SoundExchange’s ability to fulfill its responsibilities, but it also sets a dangerous precedent that could have far-reaching consequences for the rights of artists and rights owners. It is for this reason that SoundExchange is taking a stand and fighting to have the ruling reconsidered.
In conclusion, SoundExchange remains committed to its mission of ensuring that artists and rights owners are fairly compensated for their work. The organization is confident that their petition will be successful and that the ruling barring them from collecting royalties through litigation will be overturned. As the digital music landscape continues to evolve, SoundExchange will continue to be a strong advocate for the rights of artists and a vital partner in ensuring that their work is valued and protected.
