Guest Blog: Jeff Price, “Why You and Taylor Swift Are Not Getting Paid The Money You Earned From The Streams Of Your Songs (And No, Your Record Label Is Not Supposed To Pay You)”

To get a compulsory license, the interactive service must send the publisher a “notice of intent.”  This is a document that notifies the publisher that the service is intending to use a sound recording of the song. This way, the publisher or publishing administrator has a record of where their composition is being sold or used. Once the publisher receives a Notice Of Intent, it doesn’t need to do anything else or sign any contracts for the interactive service to have a license. The interactive service having sent the Notice Of Intent causes the license to happen. Under this license, every single time a recording of a song is streamed, the publisher is owed a royalty called a “mechanical royalty” (NOTE: There are a few exceptions where no royalty is due; for example during a non-paid consumer trial subscription or from a “preview” clip). A direct license is what it sounds like – the publisher, or the entity representing them, enters voluntarily into a direct deal with a music service. There are different reasons one may enter into a direct deal with a service. It may include an audit clause. It may allow you to receive a higher per-stream royalty…

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