Business Establishment Service

This category is for services which stream into retail business establishments (e.g. bars, restaurants, retail stores, etc.), as described in 37 CFR 384 and 78 Fed. Reg. 66,276 (Nov. 5 2013).

1) Minimum Fees.

  1. Amount: $10,000. All payments must be accompanied by a signed and completed minimum fee Statement of Account.
  2. Recoupability of Minimum Fee: The minimum fee is credited against monthly liability accrued within the same calendar year. Services do not submit additional payment for that year until they have exceeded the minimum fee.
  3. Due date: Annual, on or before January 31. New services beginning the creation of ephemeral recordings on or after February 1 are required to pay minimum fees within 45 days after the end of the month in which such copies are made.

2) Liability Rate, Payment, and Statements of Account.

  1. Rate:
    1. 2010-2013: 10.0% of annual Gross Proceeds
    2. 2014-2018: 12.5% of annual Gross Proceeds
  2. Payment and Statements of Account: Services must submit a Statement of Account each month, calculating the liability owed for that month, within 45 days after the end of that month, accompanied by any payment indicated on the form (if any). Statements of Account must be certified with a signature.
    1. If no payment is owed, Statements of Account may be submitted via e-mail as a PDF to royaltyadministration@soundexchange.com, or via fax to 202.640.5883.
    2. If payment is owed, the Statement of Account (accompanied by payment) should be mailed, if using regular mail to: SoundExchange, Inc, P.O. Box 75202, Baltimore, MD 21275-5202. If you are using overnight delivery send to: Lockbox Services 75202 Wells Fargo Bank 7175 Columbia Gateway Drive Attn: SoundExchange, Inc., Lockbox 75202 Columbia, MD. Tel.: 1-800-289-3557.
    3. Payment must be in the form of a check, money order, or direct bank wire (or ACH payment). For assistance in delivering money via bank wire, please contact SoundExchange at 202.640.5858 or e-mail us at royaltyadministration@soundexchange.com.

3) Reports of Use. Services are required to submit Reports of Use (i.e. the “playlists”) as described in 37 CFR 370.4.

  1. Frequency of Submission. Monthly, within 45 days after the end of each month.
  2. Content. Reports of Use must contain a complete census of all sound recordings accruing performance liability within the month.
  3. Identifying Information. Each track listing must include the following:
    1. Name of Track as listed on the recording
    2. Name of Artist as listed on the recording
    3. ISRC as listed on the recording, or if unavailable, the combination of both the album name, and the marketing label as listed on the recording
  4. Audience Measurement. Each track must have associated with it the amount of “actual total performances” accrued by the track within the month. Services unable to provide audience measurement should not let this inability prevent timely submission, even if audience measurement is not included.
  5. Format and Delivery Specifications. Reports of Use are required to be electronically submitted in one of the following ways:
    1. E-mail to reports@soundexchange.com. This method is preferred for all services if the Report of Use contains fewer than 200,000 lines.
    2. FTP. This method is preferred for services submitting Reports of Use containing greater than 200,000 lines. To request a login ID and a password, please e-mail ftp@soundexchange.com.
    3. CDR, DVD-R, or portable USB drive. If a service is unable to submit Reports of Use via e-mail or FTP, they may be delivered physically using the above media to SoundExchange, ATTN: Royalty Administration, 733 10th St., NW, 10th Floor, Washington, DC 20001.

4) Late Payments and Statements of Account

The late fee program is designed to catch all late payments, any statement of account or any report of use on a month to month basis. A Licensee is required to pay a late fee of 1.5% per month (0.75% for Business Establishment Services; increase to 1.0% effective January 1, 2014) for any payment and/or statements of account received by the collective after the due date. Late fees accrue from the due date of this payment, statement of account or report of use until payment and the related statement of account are received by the collective.

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