recordings

SoundExchange opens audits on Cumulus, Saga streaming music use

Friday, June 7, 2013 - 10:50am

SoundExchange, the recording industry body that administers royalties for digital uses of copyright sound recording (like webcasting and satellite radio) has reportedly begun auditing broadcast groups Cumulus Media and Saga Communications.

Broadcasters aren't mandated to pay royalties for their "on-air" use of sound recordings, but do become SoundExchange customers when they stream.

Inside Radio reports SoundExchange is "policing station logs to ensure broadcasters are paying what they should in streaming royalties," and that Beasley and Greater Media have already been under SoundExchange's microscope. SoundExchange will need to pay for the audits unless they find a licensee underpaying by 10% or more.

Industry groups that administer composition and publishing rights, ASCAP, BMI, and Sesac, conduct similar audits.

Inside Radio says SoundExchange is using an outside firm to conduct the audits. Read more here.

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