How will the payments I receive from SoundExchange pursuant to an LOD be reported to the Internal Revenue Service (IRS) and other tax authorities?
As of January 1, 2020, both Featured Artists and Creative Participants will be subject to backup withholding unless they have provided SoundExchange with a Taxpayer Identification Number (TIN). SoundExchange will handle the withholding and...
When will Creative Participants be paid?
Creative Participants will begin receiving payments from SoundExchange the next pay period in which their account reaches a distributable amount (either the following month or the following quarter depending upon the structure of their...
How will I know that my LOD is set up?
You will receive a notification of confirmation when SoundExchange receives your LOD application. The authorized contacts of the Featured Artist, the Creative Participant, and the person who submitted the LOD will receive further...
Can I file one LOD to cover multiple sound recordings?
Yes. An LOD directs SoundExchange to pay a portion of a specific Featured Artist’s royalties for one or more sound recordings to a specific Creative Participant. An LOD can include multiple sound recordings (or multiple albums) by the...
How do I submit an LOD to SoundExchange?
The LOD form and Repertoire Chart can be downloaded from the SoundExchange website or through your SoundExchange Direct account at https://sxdirect.soundexchange.com. Completed and fully executed LODs and the Repertoire Chart should be...
What Constitutes A Compliant Signature?
LODs must be signed by the performer or their Authorized Signatory with the following types of signatures: A handwritten (“wet”) signature that matches the signature on file with SoundExchange, OR An electronic signature (e.g. typed, or...
What paperwork needs to be completed to implement an LOD?
SoundExchange requires the following completed documents: 1) A COMPLETED AND SIGNED SOUNDEXCHANGE LETTER OF DIRECTION FORM (AVAILABLE HERE), WHICH INCLUDES: Name of the Solo Artist or Group on the recording(s) (“Featured Artist”)...
If there are multiple Featured Artists on a sound recording, who needs to complete an LOD?
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...
Can I use an LOD to direct payments to other third parties besides Creative Participants?
An LOD can only be used by Featured Artists to direct payments to Creative Participants. LODs cannot be used to direct payments to other third parties, including record labels, lenders, royalty advance companies, or any person or entity not...
Who can receive Featured Artist royalties pursuant to an LOD?
SoundExchange will honor an LOD for Creative Participants who are not the featured artist on the sound recording or studio musicians or background singers If there is any question whether an individual is eligible to receive Featured Artist...