It depends, but please be aware that SoundExchange does not pay Creative Participants “off the top,” i.e., prior to allocating royalties to the Featured Artist(s). Therefore, if a Creative Participant is seeking payment for a sound recording with multiple Featured Artists, the Creative Participant must secure an LOD from each Featured Artist on that sound recording.
For example: Sound Recording X is performed by “Artist A featuring Artist B.” SoundExchange would treat Sound Recording X as a collaboration and allocate the Featured Artist royalties 50/50 between Artist A and Artist B (unless Artist A and Artist B inform SoundExchange of an alternative allocation). If the Creative Participant is seeking to receive payment on all royalties allocated to Artist A and Artist B for Sound Recording X, the Creative Participant would need to obtain LODs from both Artist A and Artist B. If, on the other hand, the Creative Participant is only seeking payment from Artist A but not Artist B, then the Creative Participant would only need to procure an LOD from Artist A.
However, the specified percentage on the LOD payable to the Creative Participant would only apply to Artist A’s allocation of the royalties and not to Artist B’s allocation of the royalties.