This category is for services which provide audio-only digital music programming via residential televisions using cable or satellite television providers, as described in 37 CFR 383.
Annual Minimum Fee Forms (SOAs)
1) Minimum Fees.
- Amount: $100,000. All payments must be accompanied by a signed and completed minimum fee Statement of Account.
- 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.
- Due date: Annual, on or before January 31.
2) Liability Rate, Payment and Statements of Account.
Rate: New Subscription Services have different rates for transmissions occurring in association with a “Stand-Alone” or a “Bundled” contract with the applicable cable or satellite television provider:
Stand-Alone Contracts. Services operating within “Stand-Alone” contracts pay a monthly per Subscriber rate as follows:
**Services operating in 2014-2015 must pay a “greater of” between the applicable per Subscriber rates and 15% of Revenue.
Bundled Contracts. Services operating within “Bundled” contracts pay a monthly per Subscriber rate as follows:
**Services operating in 2014-2015 must pay a “greater of” between the applicable per Subscriber rates and 15% of Revenue allocated to reflect the objective value of the Licensee’s Service.
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 handwritten signature.
1) If no payment is owed, Statements of Account may be submitted via e-mail as a PDF to r[email protected], 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 #715202, Philadelphia, PA 19171-5202. If you are using overnight delivery send to: Lockbox Services #0075202 SoundExchange, Inc. MAC Y1372-045 401 Market Street, Philadelphia, PA 19106 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 [email protected].
3) Reports of Use. Services are required to submit Reports of Use (i.e. the “playlists”) as described in 37 CFR 370.4.
Frequency of Submission. Monthly, within 45 days after the end of each month.
Content. Reports of Use must contain a complete census of all sound recordings accruing performance liability within the month.
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 [email protected]. 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 [email protected]. 3) CD–R, 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.