It is the sole organization designated by the U.S. Congress to collect and distribute digital performance royalties for sound recordings.
[6][7] He also serves as the chairman of the board of SXWorks, a subsidiary created by SoundExchange following its acquisition of the Canadian Musical Reproduction Rights Association (CMRRA).
SXWorks provides administration and back office services to publishers to support multiple licensing configurations.
[14] SoundExchange is designated by the Librarian of Congress as the sole organization authorized to collect royalties paid by services making ephemeral phonorecords or digital audio transmissions of sound recordings, or both, under the statutory licenses set forth in 17 U.S.C.
Incorporated in the State of Delaware, SoundExchange is exempt from taxation under Section 501(c)(6) of the Internal Revenue Code.
"[17] Critics charged that in negotiating the royalty, SoundExchange was concerned primarily with major labels and their artists.
The SoundExchange lawsuit sought to implement the standard royalty rate for new subscriptions on Muzak's streaming services to other cable/satellite TV providers.
[24] The CRB judges established webcasting rates (per song, per listener) on December 16, 2015, for the 2016–2020 term – $0.0017 for non-subscription performances and $0.0020 for subscription performances for commercial webcasters in 2017, with rates for each subsequent year adjusted upward or downward, according to the Consumer Price Index for the year.
In 2017, an average of 2.5 million monthly address unknown NOI filings were submitted to the US Copyright Office by music services.
[32] The prevalence of such complaints has led to speculations of major labels, with their extensive repertoires and industry dominance, may mass-dispute rights holders' claims to redirect income from self-managed indie artists.
Opinions on responsibility vary, with some attributing predatory behavior to major labels, while others argue that artists should exercise due diligence in managing their rights and finances within the music industry.