Copyright Royalty Board Gives SoundExchange Permission to Use Proxy Information to Distribute Royalties

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What does SoundExchange do when it collects royalties from an Internet radio operator, but the operator doesn't provide complete information about the songs that were played? That question was raised by the Copyright Royalty Board in a Notice of Proposed Rulemaking on a proposal by SoundExchange for the distribution of such royalties, about which we wrote here. The CRB has now agreed to SoundExchange's proposal to distribute this money via a "proxy system." In other words, SoundExchange will be distributing the money pro rata based on the information that it has for the songs on which similar services did accurately report. The CRB provided the authority for this distribution by proxy for unallocated money collected during the period 2004 through 2009, which SoundExchange reports now amounts to approximately $19.4 million (down from the $28 million reported when the CRB's Notice was released in April).

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