August 30, 2018Vol 6 | Issue 4

www.soundexchange.com1

In This IssueR O Y A L T Y N O T E S

SoundExchange Launches International ACH for Some Countries 1 International ACH: How it Works 3

L A B E L N O T E S

Sub Pop Turns 30! 4

C A P I T O L H I L L N O T E S

Music Modernization Act Now Has 60 Senate Co-Sponsors 5 Broadcast Radio Makes an Ironic Plea for Fairness 6

P U B L I S H I N G N O T E S

NOI Premium: Helping Publishers and Songwriters Identify Notice of Intention to Use Filings 7

A R T I S T N O T E S

Video: Musician’s Corner 2018 8

SoundExchange Launches International ACH for Some Countries

SoundExchange has started an international ACH (IACH) program to speed up royalty payments and

reduce costs for the thousands of international recording artists and rights owners who receive sound

recording performance royalties.

Recording artists and rights owners must be registered members of SoundExchange with an active

payable account to receive royalties through the IACH program.

To reach the greatest number of members, SoundExchange is offering this new program to recording

artists and rights owners in the three largest markets outside the United States: Canada, the United

R O Y A L T Y N O T E S

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Kingdom (England, Scotland,

Wales and Northern Ireland) and

the 28 countries of the Eurozone.

The program may be expanded

to other countries in the future

as SoundExchange navigates the

complexities of each country’s

banking requirements and

regulations.

“This is an important development

in our efforts to get money into

the hands of recording artists

and rights owners faster and more efficiently,” SoundExchange President and Chief Executive Officer

Michael Huppe said. “It’s also a very timely project because the number of registered SoundExchange

members from outside the U.S. continues to grow.”

People who enroll in the new IACH program will be eligible to receive royalties monthly rather than

quarterly. The program also will help international registered members avoid hefty check cashing fees.

“That was a major impetus behind development of the IACH program. In too many countries, banks

charge exorbitant check cashing fees. This allows music creators to avoid those fees,” Huppe said. “And

by eliminating paper, SoundExchange has become a greener organization.”

Those who don’t enroll in the IACH program will continue to receive royalties via check on a quarterly basis.

The program is open to new and current registered members and it is available at no charge.

Those who currently are registered members who want to enroll in the IACH program must fill out and

submit a “Direct Deposit Form.” All forms are on the SoundExchange website here. Each region has its

own form. Registered members also can call or email for assistance at accounts@soundexchange.com.

New registrants may opt in to the IACH program after they have registered and received a welcome

letter confirming they have a payable account.

All royalties will appear on statements in U.S. dollars, rather than in a registered member’s local currency.

Since exchange rates fluctuate, SoundExchange will translate the payment from U.S. dollars to local

currency as determined by the exchange rate obtained by our bank. We will post those exchange rates

in real-time on SoundExchange Direct.

Registered members can also see the converted payment amount per distribution on SoundExchange Direct.

R O Y A L T Y N O T E S

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International ACH: How it Works

Do you want to enroll in our new International ACH (IACH) program?

Here’s what you need to know.

Only registered members with an active payee account are eligible to have royalties deposited directly

into their bank accounts through the SoundExchange IACH program.

Only registered members in Canada, the United Kingdom (England, Scotland, Wales and Northern

Ireland) and the 28 countries of the Eurozone are eligible.

Registered members who want to enroll in the IACH program, must fill out and submit a Direct Deposit

Form in a PDF format. Forms for each of the three regions are on our Registration & Membership page

here. Each region has its own form.

Registered members also can call or email for assistance. If you have any questions, please call us at

(1-800) 961-2091 during business hours or email us at accounts@soundexchange.com.

You can return the completed PDF by email to accounts@soundexchange.com, by fax to

202-640-5859, or by mail to:

SoundExchange

733 10th St. NW, 10th Floor

Washington, D.C. 20001

Forms can be completed by a registered member or by a registered member’s Authorized Signatory.

SoundExchange can only send money to an account if the name on the bank account matches the

name on the SoundExchange payee account. If an IACH deposit fails to go through, royalties will be

delivered via check as part of SoundExchange’s quarterly distribution.

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Sub Pop Turns 30!

We love indies. We also love birthdays.

So when Sub Pop turned 30 this summer, we went to Seattle to speak with Sub Pop CEO Megan

Jasper, Sub Pop President Tony Kiewel and others, including Mark Arm of Mudhoney. Watch our mini

documentary that celebrates Seattle’s iconic indie label by clicking the image below.

And Happy Birthday, Sub Pop!

L A B E L N O T E S

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Music Modernization Act Surpasses 60 Co-Sponsors in Senate

The energetic push from the broad coalition of music creators backing the Music Modernization Act (S.

2823) has surpassed another critical goalpost — the bill now has over 60 co-sponsors in the Senate.

But the comprehensive reform package isn’t over the finish line yet. With such broad support, how can

that be? The bill is being held up now by a few Senators whose opposition could threaten our broad

industry efforts to drag music licensing into the 21st Century.

Sen. Ron Wyden (D-OR) has threatened to hold up the Music Modernization Act until the sponsors

agree to pare back provisions that would finally guarantee royalty payments to legacy artists who

recorded music before 1972.

In addition to Senator Wyden’s push-back, we must overcome the lobbying efforts of two companies

in particular — SiriusXM and Music Choice — that have asked their home state Senators to protect

the artificially low royalty rates they have been permitted to pay for sound recordings for the last two

decades. (Fun fact: each of those three companies has competitors that pay market rates for sound

recordings.) Those below-market rates have shortchanged recording artists and rights owners by an

estimated $1 billion in just the last decade.

“Not surprisingly, the beneficiaries of the below-market rate standard are urging Congress to preserve

their unfair advantage,” SoundExchange President and CEO Michael Huppe wrote in a letter to Senate

Judiciary Committee Chairman Charles Grassley (R-IA) and Ranking Member Dianne Feinstein

(D-CA). “There’s no sound policy reason that Congress should give these three companies a perpetual

advantage in the marketplace, simply because they happened to be in existence in 1998.”

But the music industry isn’t sitting back with fingers crossed hoping opponents of the bill come to their senses.

Instead SoundExchange and many others in the MMA coalition continue to work hard to convince

lawmakers that reform is long overdue and that the Music Modernization Act represents a

commonsense overhaul of music licensing laws, some of which date back to 1909.

So, what now? Music creators have been forceful and determined in our outreach to Congress. We

can’t let up now. This is the time for a full court press. Direct outreach from music creators is the reason

we have 60 sponsors. Keeping up the pressure will help us get to 70 sponsors!

Our focus now is the weighing in with those who are standing with SiriusXM and Music Choice over the

rights of creators.

C A P I T O L H I L L N O T E S

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If you live in Oregon, Pennsylvania or Colorado (or have friends or family who do), please write, call

or tweet at the Senators below and tell them you are counting on them to stand with music creators

against corporate interests that want to keep their decades-old discounted royalty rates. Those

discounted rates amount to a government subsidy on the backs of music creators.

You can send your own note directly OR click here to send a letter through our action center:

Sen. Ron Wyden (D-OR)

221 Dirksen Senate Office Building

Washington, DC 20510

Phone: (202) 224-5244

Use the Senator’s “Contact” page here

to send an email

Twitter handle: @RonWyden

Sen. Pat Toomey (R-PA)

248 Russell Senate Office Building

Washington, D.C. 20510

Phone: (202) 224-4254

Use the Senator’s “Contact” page here

to send an email

Twitter handle: @SenToomey

Sen. Bob Casey (D-PA)

393 Russell Senate Office Building

Washington, D.C. 20510

Phone: (202) 224-6324

Toll Free: (866) 802-2833

Use the Senator’s “Contact” page here

to send an email

Twitter handle: @SenBobCasey

Sen. Cory Gardner (R-CO)

354 Russell Senate Office Building

Washington, DC 20510

Phone: (202) 224-5941

Use the Senator’s “Contact” page here

to send an email

Twitter handle: @SenCoryGardner

Let them know all Americans deserve the right to earn fair market value for their work.

Let them know it’s time to end the government subsidies that SiriusXM and Music Choice receive as a

result of the below-market rates they pay for sound recordings.

Let them know that the Music Modernization Act (S.2823) is the long overdue reform we need, and you

want to see their name on it as a cosponsor.

Broadcast Radio Makes an Ironic Plea for Fairness

Billboard recently published an engaging op-ed by SoundExchange President and CEO Michael Huppe.

In his piece, Huppe argues persuasively that broadcast radio should pay sound recording performance

royalties to recording artists.

Read his op-ed here.

C A P I T O L H I L L N O T E S

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NOI Premium: Helping Publishers and Songwriters Identify Notice of Intention to Use Filings

SXWorks, a subsidiary of SoundExchange, has developed new NOI Premium Services to help publishers and

songwriters search address unknown Notice of Intention to Use (NOI) filings made with the U.S. Copyright Office.

The innovative NOI Premium Services provide publishers and songwriters with a new level of

transparency through opportunities to claim unpaid mechanical royalties.

Through its NOI Premium Services, SXWorks facilitates crucial information sharing between publishers,

service providers (DSPs) and the Copyright Office.

NOI filings provide DSPs and other licensees with a release from copyright infringement liability when properly

filed. Unfortunately, the number of address unknown NOI filings made with the Copyright Office has surpassed

88 million, according to a database created by SXWorks. The volume of NOI filings underscores an industry-

wide challenge around licensing mechanical rights from music publishers. This issue has been the subject of

the Music Modernization Act, a piece of legislation currently before the U.S. Senate to revamp licensing.

The latest NOI Premium Services to assist publishers and songwriters are Works Claiming and Recordation.

Works ClaimingWorks Claiming helps publishers submit ownership claims and works shares to a DSP for its use of a

musical work. NOI Premium Services customers upload their works claims to SXWorks. SXWorks then

sorts, formats and aggregates the uploaded file and forwards the rights owner’s claim and information

to the proper contact at each DSP that filed NOIs for the rights owner’s musical works. A flat fee of $100

covers the cost of submitting up to three Works Claiming spreadsheets during a one-year period, each

with up to 500 titles listed. (For a fee of $50, users receive three additional credits, which covers the cost

of three additional spreadsheets with up to 500 titles each.)

RecordationThe Recordation services take the Works Claiming tool a step further. If a songwriter or publisher

requests the Recordation service, SXWorks will facilitate submission of the proper information and

documents to the Copyright Office. That ensures the Office’s records are current and allows DSPs to

locate a publisher’s contact information and ownership data. The recordation fee is $75 per submission

plus fees charged by the Copyright Office.

For more information on SXWorks NOI Premium Services visit https://www.sx-works.com/.

Have questions? Read our FAQs to learn more.

P U B L I S H I N G N O T E S

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Video: Musician’s Corner 2018

Earlier this summer, we partnered with Musician’s Corner in Nashville. Check out our video to see why

artists love performing at this annual event.

A R T I S T N O T E S

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