We are just now beginning to see the results of U.S. government regulated royalty rights assigned to recording artists for Internet-streamed and satellite-streamed performances of their songs. A few years ago a system was worked out via arbitration of the U.S. Copyright Office, in which a royalty of seven cents per song, per 100 listeners, would be paid to a non-profit collection and distribution agency called SoundExchange. (This agreement is subject to annual review and renegotiation.) The quest was always whether the money would filter cleanly through SoundExchange and the record labels (Sound Exchange was founded by the RIAA, though it now operates independently) and end up in artists' pockets. This article in the NY Times documents that in some cases, the mechanism works for major artists who have registered into the system. In 2005 SoundExchange expects to collect about one-tenth of the royalties paid to composers by terrestrial radio, from which recording artists do not receive revenue.












