Administration of the Compulsory License for Digital Performance

SoundExchange is the designated entity that collects royalties on behalf of labels and artists when their music is transmitted digitally i.e through digital cable and satellite television, digital radio such as satellite radio and Internet radio. Royalty is collected on a per performance basis and is distributed evenly between the artist and the label.

The royalty rate can be determined either by negotiations between the parties or by a rate setting proceeding before a statutory body called the Copyright Royalty Board. The Copyright Royalty Board periodically convenes to determine royalty rates.