What Is SoundExchange (SX)?
SoundExchange is kind of like a Robin Hood of the music industry. They take from the rich (the cable TV music channels) and give to the poor (the musicians and singers whose work is featured on those channels). You've probably heard of SoundExchange (SX) if you're an artist. They're a nonprofit organization that deals with performance rights and the distribution and collection of royalties on behalf of featured and non-featured artists and sound recording copyright owners, but not songwriters and publishers. The channels they primarily deal with are noninteractive digital transmissions—broadcasts from satellite radio, Internet radio, and cable TV music channels. SX deals with all types of sound recordings eligible for royalties, including comedy and spoken word recordings. SoundExchange (SX) was formed in 2000 after Congress passed the Digital Millennium Copyright Act (DMCA), which allowed for the creation of such organizations to deal with digital rights management (DRM). It's part of a larger group called the National Music Publishers Association (NMPA), which consists of many music publishing companies, including all five major record labels. The two organizations work together to negotiate fair rates for artists while also protecting their copyright interests. SoundExchange was founded in 2000 and became a wholly independent nonprofit organization in 2003. SoundExchange's deal with Sirius XM to set the standard for royalty rates for satellite radio broadcasts is what made them a household name. And then, just two years later, they settled the standard royalty rates for webcasted songs. SoundExchange has since grown into an organization representing more than 25,000 artists, labels, publishers and distributors across all genres of music. It's a good thing SoundExchange exists because now any music user must pay the artist or copyright owner of the music or sound recording being played publicly through certain kinds of digital broadcasting.
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