Digital Performance Right in Sound Recordings Act (DPRA)

One of the biggest growth areas in music today is online "webcasting." This generally refers to the streaming of audio over the Internet. To protect copyright owners, the U.S. has enacted the Digital Performance Right in Sound Recordings Act (DPRA) which establishes a performance right in sound recordings for certain digital transmissions. Under the DPRA, performers and owners of copyrights in sound recordings must be compensated and can receive a royalty whenever their songs are used in digital transmissions.

This is similar to the royalty that performance rights organizations such as ASCAP, BMI and SESAC collect and pay for the use of copyrighted musical works (the written composition), except it represents a license on a different work. Because there are actually two copyrights contained in a music recording - one for the musical composition and one for the particular sound recording of the composition - the public performance of sound recordings by digital transmission must also be licensed by a webcaster. The copyright in the recording (as opposed to the written composition) is generally owned by the performer and/ or the sound recording copyright owner.

SoundExchange

Digital performance rights are administered in the U.S. by SoundExchange, a non-profit organization that licenses music services that engage in the public performance of sound recordings by digital transmission. Like the other performance rights organizations, they collect the license fees and distribute royalties to those whose recordings were performed - the performers and the sound recording copyright owners.

In the U.S., SoundExchange licenses and collects royalties from satellite radio - XM and Sirius - non-interactive webcasts, cable subscription services like DMX and Music Choice that play on certain cable TV stations, and from certain stations that also simulcast on the web. Digital downloads are not considered a "performance" and are not covered.

Bands and performers who are members of performing rights organizations like ASCAP, BMI or SESAC should also consider joining SoundExchange to receive payment of royalties for the digital performances of their copyrighted sound recordings.

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