DJ stores & rights

SoundExchange

SoundExchange is a nonprofit that collects and distributes digital performance royalties for recording artists and sound recording rights owners. These neighboring rights concern eligible non-interactive services, rather than a store where listeners choose individual tracks.

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Why it matters

DJ stores & rights

Under the US statutory allocation, 50% goes to the sound recording rights owner, 45% directly to featured artists and 5% to funds for non-featured musicians and vocalists. These are different entitlements, not a single payment to the label.
SoundExchange administers eligible statutory royalties; the Copyright Royalty Board sets applicable rates and terms.

Where royalties come from

Non-interactive webcasters: radio-style services where listeners do not select each individual recording, such as eligible Pandora or iHeartRadio services.
Satellite and digital cable music services: eligible transmissions such as Music Choice.
Satellite radio: services such as SiriusXM. US terrestrial radio generally pays composition royalties, not a federal sound recording performance royalty.

Rights and eligibility

BMI, ASCAP and SESAC administer public-performance rights in compositions for songwriters and publishers. Their registration is separate from SoundExchange; delivery through Distrid does not replace artist registration or guarantee payments.
For delivery to this channel through Distrid, do not submit production loops, sound effects, karaoke, classical recordings of public-domain compositions, DJ sets or continuous mixes, or prayer recordings. These are channel delivery requirements, not a statement that those recordings have no legal rights.

Official website: SoundExchange ↗ SoundExchange · Digital performance royalties ↗ U.S. Copyright Act · § 114 ↗