The recent announcement by Digital Music News that $200 million in unpaid performance royalty money is piling up has been confirmed by SoundExhange. Besides being an embarrassment for SoundExchange, what does it say about properly dispersing performance royalties? SoundExchange is designated by the Librarian of Congress as the sole organization authorized to collect royalties paid by services required to 'pay for play' music by performers. SoundExhange is also designated by the U.S. Copyright Office to distribute collected royalties to copyright owners and performers entitled to those royalties. So why is there $200 million collecting dust and possibly interest in the coffers of SoundExhange???
Most of the $200 million "highlights the problems this organization is facing locating performing artists" according to Digital Music News. The problem, SoundExhange says, is in part caused by the booming popularity of online radio. "The whole industry is increasing year-over-year", says SoundExchange executive Laura Williams. "We're just part of, or more accurately a reflection of, that explosion." SoundExhange was questioned why services like Pandora have to pay "such heavy royalties if the money ends up in a holding tank, with large amounts undistributed?" Pandora reportedly spent $30 million of their $50 million revenues in 2009 on royalties. Pandora founder Tim Westergren defended SoundExchange saying that "As a musician myself, that musicians need to step up here. I don't think SoundExchange is trying to hold on to money. It's just remarkably hard to get musicians to take the initiative." ...
At least one attorney reviewing the situation noted that "any non-profit (which SoundExchange is) carrying more than $200 million on its books has a serious problem." Here are the questions I have for SoundExchange: 1) If the $200 million is gaining interest is the amount of interest deducted from future payments?, 2) What happens to unpaid royalties that for one reason or another cannot be disbursed?, 3) Can you devise a better system of making royalty disbursements? (If not) 4) why should you continue be authorized by Congress to collect performance royalties???
10 Timeline Memories...
1.1844] Debuted on this date: Samuel Morse transmits the message: "What hath God wrought?" from Washington to Baltimore as he opens America's 1st telegraph line. His assistant, Alfred Vail who receives the message says: "Huh?"...
2.1883] Happy 127th: The Brooklyn Bridge opens to the public...
3.1935] Let there be light: Cincinnati and Philadelphia play the 1st major league night game with the Reds on top 2-1. FDR pushes a button in Washington to turn the lights on...
4.1958] Wedding Bells: UPI is formed by a merger of United Press and the International News Service...
5.1974] The curtain comes down: The last "Dean Martin Show" airs on NBC-TV after a run of 9 years. This is a clip containing bloopers of one of Dino's shows...
6.1974] "Happy Trails": Jazz great Duke Ellington passes away from pneumonia and lung cancer. Sir Duke was 75...
7.1987] Like father, like son: Al Unser, Sr. wins his 4th Indy 500 at the age of 47. Four years later, same date in 1991, Al Unser, Jr. wins it, making junior the first, second-generation winner...
8.1988] Recordbreakingtalk: John Moschittasetsarecordforfasttalkingwith586wordsperminute...
9.1994] Guilty as charged: Four men are convicted of bombing the World Trade Center in 1993. Each receives a sentence of 240 years in prison and a free ticket to burn in hell...
10.2000] Slaughter House: Five are killed, two wounded when 2 gunmen enter a Wendy's in Flushing. The gunmen tie up the victims in the basement and shoot them. This was one of the most heinous crimes in New York City history...
Music Memories:
•1969] Lip syncing on 'American Bandstand': The Guess Who do "These Eyes" and "Laughing"...
•1974] On "Midnight Special": Richard Pryor hosts musical guests Olivia Newton-John and Boz Scaggs...
•1964] #1 on this date: "Love Me Do" - The Beatles...1969] "Get Back" - The Beatles... 1975] "Shining Star" - Earth, Wind & Fire...1984] "Let's Hear It For The Boy" - Deniece Williams...
"Happy Birthday...happy birthday":
Rich Appel (53), Roseanne Cash (55), Priscilla Presley (65), Patti LaBelle aka Patricia Holt (66), Gary ('Radar' of *M*A*S*H) Burghoff (67), Bob Dylan (69) and Tommy Chong (72)...
Timeline Countdown: 7 days until Memorial Day, 12 days until the Belmont Stakes, 27 days until Father's Day and 28 days until summer...
