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Friday, August 01, 2008 8:15:44 PM
http://entertainment.howstuffworks.com/music-royalties7.htm
Internet royalties
For Webcasts and other digital performances, SoundExchange was formed to collect and distribute those performance royalties. Just as in traditional media, broadcasters of digital performances of music must pay royalties to the songwriters and publishers of the music they play. Because of the Digital Performance Right in Sound Recordings Act of 1995, however, they must also pay royalties to the recording artists. SoundExchange collects electronic play logs from cable and satellite subscription services, non-interactive webcasters, and satellite radio stations. They then distribute the royalty payments directly to artists and recording copyright owners (usually record labels) based on those logs.
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