SoundExchange Expands Into Private Copy Royalty Collection, Distribution

SoundExchange will be expanding its operations and will begin collecting and distributing domestic and foreign private copy royalties, a function which had previously been performed by the Alliance of Artists and Recording Companies (AARC).

The AARC has represented recording artists and sound recording copyright owners in the areas of hometaping/private copy royalties and rental royalties. These royalties are generated by the sales of recordable media such as blank CDs, personal audio devices, automobile systems, media centers, and satellite radio devices that have music recording capabilities. They have historically been distributed to AARC’s 500,000+ members worldwide.

AARC will distribute all available royalties it has collected since 2018 in a final distribution in late 2021 before it ceases operations. If you are an artist or sound recording copyright owner who has previously received private copy royalties from AARC and your payment or tax information has changed since 2018, contact AARC before July 31, 2021 to change it.

SoundExchange plans to begin claiming international PC royalties in late 2021 and domestic PC royalties in February of 2022. This comes as part of SoundExchange’s multi-year technology initiative centered on streamlining systems and increasing efficiency across the music industry.

“We are committed to leveraging our best-in-class technology solutions to enhance the music ecosystem,” says Michael Huppe, President & CEO, SoundExchange. “Expanding into private copy royalty collection and distribution is just one step in our mission to make the business of music simpler and more efficient for creators.”