#+title: Description: sound exchage LOD
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* link
- [[../_subsections/music-production-company/v08-producer_contracts.org][producer contracts]]
* SoundExchange LOD in a Music Producer Contract
** 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.