Missing payments due you?

Have any of your recordings been played on the Internet lately? If so, did you get paid? If not, then you need to register with Sound Exchange.

Sound Exchange is a non-profit performance rights organization that was designated by the U. S. Copyright office to collect and distribute digital performance royalties. The people who stream digital recording, such as Internet radio, cable music channels, satellite radio, and other digital services, are called service providers. Service providers are now required to pay royalties on the music they play. Most songwriters already know about and have signed up with performance rights groups such as BMI, ASCAP, or SESAC. However, these organizations collect and distribute royalties only for songwriters and their publishers, but not for performers and owners of the recording copyright. That's where Sound Exchange comes in.

If an artist records a song that is played on one of the digital services, Sound Exchange will pay 50% of the royalties collected to the recording copyright owner (usually the label), 45% to the artist, and 5% to a fund for backup singers and session players. If the artist is independent (has no label) and owns the recording copyright, then 95% of the royalties are paid directly to the artist.

Service providers are required to send periodic listings of the recordings they have played along with a payment of the royalties that are due. Sound Exchange uses this information to determine who is owed royalties and sends out checks accordingly. However, to receive your checks, you must be registered with Sound Exchange. If any of your recordings have been played by Service Providers, you may have money already waiting for you. To register, go to SoundExchange.com. When you do, make sure you have a voided bank check, a scanned copy of your driver's license or passport, and a completed IRS form W9.

Keep in mind that most recordings have two copyrights: one for the song and one for the actual recording. These are designated on recordings by a C in a circle (©) and by a P in a circle () respectively. The first is handled by BMI, ASCAP, and SESAC, while the second is handled by Sound Exchange.

Currently royalties are paid only on the digital services, but there is a bill before Congress to require radio stations to pay the same royalties. Obviously, the stations are lobbying against this as it will significantly increase the cost of their operations. However, if the bill does become law, you the artist may be entitled to additional revenues in the future.