SoundExchange Letter of Direction

Meeting(s) with an attorney to discuss how to take advantage of royalties you may be owed from SoundExchange.
Assistance with your SoundExchange letter(s) of direction, and if needed, application(s) for Default Allocation.
Communication with third parties in connection with such letter(s) and application(s).

More Info

Help registering for SoundExchange, if needed.
Obtain legal advice on U.S. copyright law in connection with SoundExchange letters of direction (“LODs”), such as an explanation of royalties and the meaning of form fields on LODs.
If needed, obtain legal advice in connection with a default allocation of royalties for certain producers, mixers, and engineers who participated on sound recordings created prior to November 1, 1995 (the “Default Allocation”).
Unlimited scheduled meetings to discuss any questions or comments in connection with LODs and Default Allocations for agreed upon producer agreements.
If needed, an attorney will respond to any clerical email inquiries from SoundExchange in connection with submission of your LODs and/or Default Allocations.
Management of your SoundExchange account and collection of royalties by an experienced attorney.

Fees

Attorney will collect and retain a percentage of SoundExchange monies. Schedule an initial inquiry meeting for additional information.
There is no upfront fee for this service.
You do not need a membership with Music Law Pro for this service.

Why should I obtain and register a LOD with SoundExchange?

Ability to Collect Royalties. Generally, producers, mixers, and engineers who made sound recordings on or after November 1, 1995 are not automatically entitled to collect performance royalties in the U.S. However, filing a LOD allows SoundExchange to distribute a portion of the performer’s royalties from their sound recording performance royalties to the producers, mixers, and/or engineers.
Retroactive Collection of Royalties. You aren’t limited to collecting royalties from the date you submit the LOD. Filing a LOD allows you to specify an effective date, giving you the opportunity to collect royalties for past digital performances of the sound recording.
Eligibility of the Default Allocation. Producers, mixers, and engineers who made sound recordings prior to November 1, 1995 may be legally entitled to a Default Allocation of two-percent (2%) of all receipts collected.

Why should I work with an attorney to register my SoundExchange LOD instead of doing it myself?

Less mess, less stress. Our music attorneys have experience preparing and registering LODs. Rather than trying to figure out how to register alone, let us help you navigate the process.
Save time. Don’t waste your time chasing performers and record labels for signatures or a copy of your contract. Let us do the heavy lifting for you.

FAQs

What is a digital performance royalty? Generally, digital performance royalties are monies collected from streaming services that don’t allow listeners to pick the next track, such as Pandora and SiriusXM. These royalties are collected and distributed in the United States by a nonprofit organization called SoundExchange.
What is the Allocation for Music Producers Act (the “AMP Act”)? The AMP Act is a part of the Music Modernization Act that addresses producers, sound engineers, and mixers to collect digital performance royalties via a LOD.
Who is eligible to collect royalties under the AMP Act? In general, creative participants such as producers, sound engineers, and mixers are eligible to collect royalties under the AMP Act when either (a) the performer files a LOD with SoundExchange, or (b) the producer, sound engineer, or mixer applies for the Default Allocation. Non-performers, such as session musicians and back-up singers, generally are not eligible to collect royalties under the AMP Act as they receive their royalties elsewhere.
What is a LOD, and what is needed to file? A LOD is a document where the performer on a sound recording agrees to share a percentage of their royalties with a producer, engineer, or mixer who participated in creating the recording. The application for a LOD requires a completed and signed LOD form and a completed LOD repertoire chart. The repertoire chart lists the sound track name, percentage of performer royalties to be distributed to the creator, and other optional information, such as the release date and ISRC.
When does a LOD expire? Generally, a LOD does not expire and remains in effect until the performer decides to withdraw.
What is the Default Allocation, and what is needed to file? In general, the Default Allocation provides an avenue for producers, engineers, and mixers to collect digital performance royalties if they participated in the creation of a sound recording that was fixed prior to November 1, 1995. These creators may be legally entitled to 2% of all receipts collected for digital performance royalties, which is paid from the performer’s share. If the sound recording was created prior to November 1, 1995, the creator may be eligible for the Default Allocation if: (1) The performer is registered with SoundExchange; (2) The creator makes reasonable efforts to have the performer sign a LOD and is unsuccessful after 120 days; and (3) The creator has a contract with the performer or their label indicating that the creator is entitled to royalties for that sound recording.

The application for the Default Allocation requires a signed and notarized “AMP Act Certification”, a copy of the contract indicating the creator’s entitlement to royalties, and a copy of the unsigned LOD.

Why November 1, 1995? On November 1, 1995, the Digital Performance Right in Sound Recordings Act was passed, granting sound recording copyright owners the right to exclusively perform their recordings via digital audio transmissions. The AMP Act’s Default Allocation was created to match that date.
What happens if there is more than one person entitled to collect the Default Allocation? Generally, if more than one producer, engineer, or mixer is entitled to the 2% Default Allocation, any creator whose application has been approved by SoundExchange will receive a share of the 2%. For example, if there is a total of $10,000 in digital performance royalties for a sound recording and both a producer and a mixer are entitled to the Default Allocation, they will split the $200, receiving $100 each.
Can a producer, engineer, or mixer’s heirs apply for the Default Allocation? Generally, yes. Heirs may submit an application for the Default Allocation. The Default Allocation percentage would be split evenly among all heirs for that producer.
Are creative participants who signed a work for hire agreement eligible for the Default Allocation? It depends. In order to be eligible for the Default Allocation, a producer, engineer, or mixer must provide proof of an agreement with the record label or performer whereby they are entitled to royalties in connection with the sound recording. If the work for hire agreement only specifies payment of a flat fee to the creator and no share of royalties, then the producer, engineer, or mixer generally will not be eligible for the Default Allocation. However, if the work for hire agreement specifies that the creator is entitled a share of royalties, then they might be eligible for the Default Allocation.