#+title: Description: sound exchage LOD
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* link

- [[./_subsections/music-production-company/v08-producer_contracts.org][producer contracts]]

* definitions
** Copyrights Explained
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two main rights of copy in the music industry
1. "masters"
2. publishing

*** masters
**** sound recording copyright of the composition and or song
  - sound recordings include
    - records
    - masters
    - phonogram ℗  (sound recording copyright symbol)
  - audio recording files
    - wav, mp3, aiff
    - master recoring royalties

**** master recording royalties
1. through the distributor
   - tunecore
   - distrokid
2. major label

**** performance royalties
- soundexchange (US based)
- PPL (UK based)
- collection companies outside the US are referred to as "neighboring rights"

*** Publishing
- performing arts copyright
  - composition
  - sheet music
  - midi files
  - publishing
  - song to be performed

**** collect performance royalties for the composition
- [[https://www.bmi.com/][BMI]]
- [[https://www.sesac.com/][SESAC]]
- [[https://www.ascap.com/][ASCAP]]
  - The American Society of Composers, Authors and Publishers
  - US based
- [[https://www.prsformusic.com/][PRS for Music]]
  - (UK based)

**** mechanical rights collections
- [[https://www.harryfox.com/][HFA]] - Harry Fox Agency
- [[https://www.musicreports.com/][Music Reports]]
- [[https://www.themlc.com/][The MLC]] - Mechancical Licensing Collective

**** lyric display royalties
- [[https://www.lyricfind.com/][LyricFind]]
- [[https://www.musixmatch.com/][musixmatch]]


*** 6 Rights of Copyright
United States Code title 17

1. Right to Reproduce
2. Right to Prepare Derivative Works
3. Right to Distribute
4. Right to Public Performance
5. Right to Public Display
6. Right to Digital Performance

** SoundExchange LOD in a Music Producer Contract
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*** What is a SoundExchange LOD?
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.

*** Why is an LOD Important?
- 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.

*** How an LOD Works
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.

*** Sample SoundExchange Letter of Direction (LOD)
#+BEGIN_SRC text
[Artist’s Name]
[Artist’s Address]
[City, State, Zip Code]
[Email]
[Date]

SoundExchange
733 10th Street NW, 10th Floor
Washington, DC 20001

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.

***Sound Recordings:**
1. "[Song Title 1]" - [ISRC]
2. "[Song Title 2]" - [ISRC]
3. "[Album Title]" - [ISRC] (if applicable)

***Royalty Percentage to be Paid to Producer:**
- [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.

Sincerely,
[Artist’s Signature]
[Printed Name]

***Acknowledged and Agreed:**
[Producer’s Signature]
[Printed Name]
#+END_SRC

*** Additional Notes:
- The ISRC (International Standard Recording Code) helps identify the exact recordings.
- The artist must be a **registered member of SoundExchange** for this to be processed.
- This LOD is **only for digital performance royalties**, not mechanical or publishing royalties.