ABOUT THE
RECORDING INDUSTRY ASSOCIATION OF AMERICA (RIAA)
(from http://www.riaa.com)
MISSION
STATEMENT
The
Recording Industry Association of America is the trade group that represents
the U.S. recording industry. Our mission is to foster a business and legal
climate that supports and promotes our members' creative and financial
vitality. Our members are the record companies that comprise the most vibrant
national music industry in the world. RIAA® members create, manufacture and/or
distribute approximately 90% of all legitimate sound recordings produced and
sold in the United States.
In
support of our mission, we work to protect intellectual property rights
worldwide and the First Amendment rights of artists; conduct consumer, industry
and technical research; and monitor and review state and federal laws,
regulations and policies.
Recent
laws have granted sound recording copyright owners a long overdue right in
public performance. The first of these laws, the Digital
Performance Right in Sound Recordings Act of 1995 ("DPRA"),
created a right for public performances made by digital transmission. In 1998,
the Digital Millenium Copyright Act ("DMCA")
amended the DPRA to facilitate licensing for certain services such as
webcasters. The RIAA has established the Performance Right Program ("the
Soundexchange") to administer the performance right royalties arising from
both of these acts, on behalf of the sound recording copyright owners (usually
record companies). The Soundexchange involves both licensing and royalty
administration and distribution efforts.
The
public performance right established by these laws falls primarily into two
categories. For interactive, or on-demand services, copyright owners have an
"exclusive" right. This means that individual copyright owners are
free to license interactive transmissions on the terms they see fit.
Non-interactive services may qualify for a "statutory license," a
license granted by law provided that the transmission service abides by certain
conditions set forth in the law.
In
addition to a statutory license for performances, the DMCA clarified the
parameters of "ephemeral recordings" – i.e. copies made for the
specific purpose of making licensed digital transmissions, including creating a
statutory license for multiple ephemeral recordings.
Digital
audio services (such as webcasters) eligible for a statutory license pay
royalties based on a negotiated or arbitrated rate. The Soundexchange
negotiates and issues licenses pursuant to the terms of the statutory licenses
on behalf of the Soundexchange members. If negotiations are unsuccessful, the
Soundexchange represents the members in a Copyright Office arbitration
proceeding.
Once
the royalty rate is established, the Soundexchange collects, administers and
distributes the royalties to entitled sound recording copyright owners. Of the
royalties allocated to the record companies, the law prescribes that a portion
be given to the recording artists. Specifically, half of the royalties
collected under a statutory license must be allocated to artists as follows:
All
performance royalty calculations and distributions are based on actual
performance data provided to the Soundexchange by subscription service
providers, webcasters, and other licensees.
Members
of the Soundexchange include major and independent record companies alike, from
Sony and Warner to independents Koch International, Alligator Records, Zomba,
and Blacktop Records. The Copyright Office recognized the benefits of
collective administration of these royalties, and so has named the
Soundexchange as the sole administrative entity for subscription services'
royalties.
Members
of the Soundexchange include major and independent record companies alike. The
Soundexchange is clearly not only a project of the majors. This is evidenced by
the RIAA’s membership roster for the Program, which includes such well known
independents as Koch International, Alligator Records, Zomba and Blacktop
Records. These companies understand the economic efficiencies and benefits of
sharing the costs associated with administering royalties.
The
Soundexchange involves both licensing and royalty administration and
distributions. The Soundexchange can negotiate and issue licenses pursuant to
the terms of the statutory licenses. The Soundexchange is currently negotiating
with and issuing licenses to webcasters that wish to obtain a statutory
license. This licensing function is guaranteed to be an on-going effort,
especially since the statutory license requires new rates and terms to be set
every two years.
Once
rates and terms are set, the Soundexchange collects, administers and
distributes the performance right royalties due from statutory licensees. The
Soundexchange is prepared to handle the following: