A *Letter of Direction (LOD) for SoundExchange* is a formal document signed by an artist, directing **SoundExchange** (the U.S. organization responsible for collecting and distributing digital performance royalties) to pay a portion of royalties to a producer or another third party.
- Ensures that the *producer receives a share* of **digital performance royalties** from non-interactive streaming services like Pandora, SiriusXM, and web radio.
- Since SoundExchange only pays **artists and labels**, an LOD is necessary for a producer to be paid directly.
- Without an LOD, the artist receives all royalties and must pay the producer manually.
1.*Producer & Artist Agreement*: The producer's contract includes a percentage of digital performance royalties.
2.*Artist Signs the LOD*: The artist fills out and signs a **SoundExchange Letter of Direction**, specifying the producer’s share.
3.*Submission to SoundExchange*: The LOD is sent to SoundExchange for processing, and upon approval, the producer starts receiving their share directly.
Subject: Letter of Direction to Pay Producer Royalties
To Whom It May Concern,
I, [Artist’s Name], am the Featured Recording Artist registered with SoundExchange for the sound recordings listed below. I hereby direct SoundExchange to pay [Producer’s Name] ([Producer’s SoundExchange Member ID, if applicable]) a percentage of my digital performance royalties for these recordings, as detailed below.
- [X]% of the featured artist’s digital performance royalties
By signing below, I authorize SoundExchange to make the above payments directly to [Producer’s Name] and acknowledge that this direction is irrevocable except by mutual written agreement.
