March 29, 2017
In September 2016, SoundExchange began distributing to featured and non-featured performers proceeds of a SiriusXM legal settlement related to that company’s use of sound recordings that were created prior to February 15, 1972.
In selecting SoundExchange, which manages close to $900 million in royalties per year, to distribute the settlement fund, the major labels (Sony Music Entertainment, Universal Music Group and Warner Music Group) tapped into the company’s state-of-the-art royalty administration platform, which manages all aspects of royalty calculation and distribution, license relationships, data integrity and management. SoundExchange provides rights management services for more than a dozen directly negotiated agreements, in addition to its role as the industry’s administrator of the statutory license for record labels and recording artists.
“By selecting SoundExchange to manage this large settlement fund, the labels demonstrated their confidence in our track record managing multiple configurations of rights licenses and settlements. We thank the labels for choosing SoundExchange to make the artist distributions on their behalf,” SoundExchange President and Chief Executive Officer Michael Huppe said.
As we distribute these funds in the future, recording artists will notice a line item on their statements that identifies “Pre-72 Settlement” royalties.