Willem Dicke Interview

Does SoundExchange function as a subsidirary of the RIAA- or is it independent?

SoundExchange is independent of the RIAA. SoundExchange started as an unincorporated division of the RIAA, but became a separate company in 2003.

Was the CRB's decision fair?

In determining a rate that would cover the next five years, the CRB issued a very detailed decision and one that showed much deliberation and consideration of issues argued by both sides. The judges heard 18 months of testimony from dozens of witnesses, weeks of live hearings, countless depositions and a comprehensive review of tens of thousands of pages of evidence. We believe the rates to be fair compensation for the creative output of artists, and that the demand for their music ought to be reflected in an equitable valuation of their work.

How are "Per performance" royalty rates handled abroad? How does American royalty compensation differ from foreign protocol?

The biggest difference is that the United States stands alone among developed nations in not granting a right for performances broadcast on traditional "terrestrial" radio (AM/FM) and television. This means, for example, that if Van Halen's version of the song "Pretty Woman" is played on FM radio, only the songwriter (Roy Orbison, and since he is deceased, his estate) collects royalties. Van Halen doesn't see a dime for its performance.

Digital media services such as satellite radio, Internet webcasters and cable/satellite television radio are required to pay both the songwriter AND performance royalties. We hope that Congress extends this standard to over-the-air (terrestrial) radio to assure a level playing field for all broadcasters, and that artists and labels are appropriately compensated from all media platforms that profit from their work.

What is SoundExchange's stance on Web Radio?

We want to see webcasters thrive. If they grow, we grow--we are all in this business together. However, assuring fair treatment for all stakeholders in this dynamic landscape is critical. Webcasters and simulcasters are in the business of providing a unique product---music---to consumers. SoundExchange believes the CRB correctly recognized that the people who create the music---artists and labels---for these various platforms should be fairly compensated in a manner that reflects the value of their contributions.

Who stands to benefit from the decision more: labels or artists?

The royalties we collect are distributed evenly between artists and labels. Overall, 65 percent of SoundExchange's royalties go to artists and small and independent labels.

Will SoundExchange and other PROs like ASCAP & BMI eventually merge?

There are no plans at this time. SoundExchange collects royalties for performers and sound recording copyright owners (a record label in most cases), while PROs such as ASCAP and BMI collect on behalf of songwriters and publishing companies for the composition of a musical work.