Sound Exchange

First, ensure your service is eligible to operate under the statutory license. Begin by reviewing the U.S. Copyright Act, 17 U.S.C., §§ 112 and 114 to familiarize yourself with the applicable regulations that would govern your service. For more information about statutory licensing, please review the Licensing 101 section on our website.

This agreement was negotiated with the National Religious Broadcasters Music License Committee in July of 2009, but others may opt in to these rates.

Under the agreed rates and terms, eligible services include webcasters or simulcasters who are registered as tax-exempt under the 501 code of the Internal Revenue Service, or wholly owned by a state or federal government entity.

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View all rates and terms in the Federal Register (74 Fed., No. 145 Reg, August 12, 2009). Webcasters who opt into the agreed rates and terms will be required to pay a $500 annual minimum fee per channel or station for usage up to 159,140 aggregated tuning hours per channel or station monthly. Any usage above that monthly threshold will accrue a “per performance” rate for each track played.

Services will be required to supply regular reporting in accordance with regulations. For more information about reporting and payment requirements, see “How Do I Pay”.

Microcasters (defined as services with less than 44,000 aggregate tuning hours per year) may pay an additional $100 proxy fee in lieu of providing reports of use.

For more information about reporting and payment requirements, see “How Do I Pay”.

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For usage beyond the monthly ATH threshold, the following ‘excess usage’ rates apply:

YEAR           RATE

* $.00251 per ATH, except in the case of channels or stations where substantially all of the programming is reasonably classified as news, talk, sports or business programming, in which case the royalty rate shall be $.0002 per ATH)

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Services electing these rates and terms must provide reports of use to SoundExchange. These requirements enable SoundExchange to most accurately process royalty payments to artists and copyright holders.

Services with more than 159,140 ATH monthly must provide monthly census reporting (actual recordings played and total listenership) within 45 days of the end of the relevant month. Services with less than 159,140 ATH/monthy may provide quarterly sample reporting of no less than two weeks per quarter. Microcasters (as defined above) may choose to make an annual $100 “proxy fee” in lieu of submitting monthly census reporting, and file only the monthy statement of account indicating monthly usage. Microcasters are not eligible for ‘excess usage’ rates, as Noncommercial Microcasters have an annual usage cap of 44,000 ATH. Exceeding this cap excludes eligibility as a Microcaster.

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Services must elect annually at the beginning of each year.

Eligible webcasters wishing join in these rates and terms must provide notice to the Copyright Royalty Board of your intent to file for the statutory license by submitting a Notice of Use of Sound Recordings Under Statutory License (“Notice of Use”).  This form must be submitted to the Copyright office and not to SoundExchange, and need only be filed once. The Notice of Use must be accompanied by a $25 filing fee and should be submitted to the Copyright Royalty Board at the address listed on the form. Please note that the Copyright Royalty Board WILL NOT confirm receipt of form and fee. If you wish to receive confirmation of receipt, you will need to send via certified mail, return receipt requested. Additionally, you must file a Notice of Election form to notify SoundExchange of your choice.

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Services which have opted in must provide all minimum fees, monthly statements of account and payments, and reports of use to SoundExchange as required by law. For guidelines and forms, see “How Do I Pay?”

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