SoundExchange collects and distributes digital performance royalties from the use of sound recordings on behalf of more than 155,000 recording artists and master rights owners (typically the record label) and administers direct agreements on behalf of rights owners and licensees. It is the only organization officially designated by the U.S. Congress to do so. SoundExchange pays featured and non-featured artists ( background vocalists, session musicians, etc.) and master rights owners for the non-interactive (you don’t choose which song plays) use of sound recordings under the statutory licenses set forth in 17 U.S.C. § 112 and 17 U.S.C. § 114.
Music Business Past vs. Present
There is a new trend in the music business that has record labels sweating in the boardroom. This new trend is called ìDo It Yourselfî (D.I.Y.) . With Digital Technology anyone can start a record label and have a personal studio on their computer. There are a number of free or (very inexpensive) studio recording software applications that allow an artist to record and distribute their own material without the help or control of any other record label.