As part of SoundExchange multi-year technology initiative centered on leveraging the use of data to streamline systems and increase efficiency across the music industry, SoundExchange recently announced the expansion of their operations to begin collecting and distributing domestic and foreign private copy royalties, a function of the music industry that had previously been performed by the Alliance of Artists and Recording Companies (AARC).

What Are Private Copy Royalties?

In many countries, artists and labels are entitled to receive royalties as compensation for the private “home taping” uses of their recordings. The manufacturers of home recording equipment and sound carriers (tapes, discs, etc.) pay into a fund, that is then distributed to artists and labels. In the United States (U.S.), the Audio Home Recording Act (AHRA) applies to certain blank digital media, such as music-branded CD-Rs. Outside the U.S. however, private copying regimes typically apply to a much broader set of equipment and media, including computers, mobile phones, and digital music players.