# SoundExchange

> SoundExchange is a nonprofit collective management organization, founded in 2003 and based in Washington, D.C., that collects digital performance royalties for sound recordings in the United States. It collects from non-interactive digital services such as satellite and internet radio under the statutory license and pays recording owners, featured artists and non-featured performers.

Source: https://wiki.snvrkotics.com/soundexchange · Category: Royalties and collection · Last reviewed: 2026-10-02 · License: CC BY 4.0

## Key facts

- **Type:** Nonprofit
- **Founded:** 2003
- **Headquarters:** Washington, D.C.
- **Collects:** US digital performance royalties for recordings
- **Statute:** [17 U.S.C. § 114](https://www.law.cornell.edu/uscode/text/17/114)
- **Statutory split:** 50% rights owner · 45% featured artists · 5% non-featured performers

## What it collects

US copyright law gives the owners of sound recordings a performance right limited to **digital audio transmissions**. For non-interactive services — satellite radio, internet radio, cable and satellite TV music channels — that right is subject to a **statutory license** with rates set by the Copyright Royalty Board, and SoundExchange is the collective that collects and distributes the money.[1][2] Interactive, on-demand streaming is licensed directly by labels and distributors and does not go through SoundExchange.

## How the money is divided

The statute fixes the split of these royalties: **50%** to the owner of the [master recording](https://wiki.snvrkotics.com/master-recording), **45%** to the featured artists, and **5%** to non-featured musicians and vocalists, paid through a fund administered for the American Federation of Musicians and SAG-AFTRA.[1] Because featured artists are paid directly, an artist who does not own their masters still receives their 45% without it passing through their label.

## Registration

Both rights owners and featured artists must register with SoundExchange to be paid, and recordings are matched by [ISRC](https://wiki.snvrkotics.com/isrc). Since the [Music Modernization Act](https://wiki.snvrkotics.com/music-modernization-act), producers, mixers and engineers can also be paid a share directly when the artist files a letter of direction.[2]

## Questions

### Is SoundExchange the same as a PRO?

No. PROs collect performance royalties for compositions. SoundExchange collects digital performance royalties for sound recordings. A song played on internet radio earns both.

### Does SoundExchange collect from Spotify?

Not for on-demand streams, which are licensed directly by labels and distributors. It collects from non-interactive services under the statutory license.

### Do independent artists need SoundExchange?

Yes, if their recordings are played on US satellite or internet radio. A self-released artist should register both as the featured artist and as the rights owner.

## References

1. Legal Information Institute, Cornell Law School. "17 U.S. Code § 114 — Scope of exclusive rights in sound recordings." https://www.law.cornell.edu/uscode/text/17/114
2. SoundExchange. "SoundExchange." https://www.soundexchange.com/

## Related

- [Neighboring rights](https://wiki.snvrkotics.com/neighboring-rights): Neighboring rights pay performers and recording owners when sound recordings are broadcast or played in public, in countries that recognize them.
- [Master recording](https://wiki.snvrkotics.com/master-recording): A master recording is the original fixed recording of a performance, and the separate copyright that protects that recording.
- [Performing rights organization](https://wiki.snvrkotics.com/performing-rights-organization): A performing rights organization licenses the public performance of songs and pays the royalties to their songwriters and publishers.
- [Music Modernization Act](https://wiki.snvrkotics.com/music-modernization-act): The Music Modernization Act is the 2018 US law that created the blanket mechanical license, The MLC, and protections for pre-1972 recordings.
- [International Standard Recording Code](https://wiki.snvrkotics.com/isrc): The ISRC is a 12-character code, defined by ISO 3901, that identifies one specific sound recording or music video recording.

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Cite as: "SoundExchange." SNVRKOTICS Wiki, 2026-10-02. https://wiki.snvrkotics.com/soundexchange