On December 10th, changes to our CD Baby Member Agreement take effect that will allow us to administer on your behalf any unclaimed Digital Performance Royalties being held by SoundExchange, a not-for-profit entity that has the exclusive right to collect and distribute non-interactive royalties.
IMPORTANT: If you’re already claiming your own royalties directly from SoundExchange, these changes will NOT affect you; SoundExchange will still pay you directly. Our Terms of Service is being amended so we can help artists that haven’t yet registered with SoundExchange. We don’t want them to miss out on collecting revenue that their music has generated.
Why would they miss out?
Well, after three years, SoundExchange releases any unclaimed royalties into the sunset, which basically means that money gets scooped up by the major labels.
We don’t want your royalties getting paid to some major label that had nothing to do with the creation of your tracks. That’s why we’re changing our Terms, to make sure you don’t lose out on YOUR money.
Can’t artists get these directly from SoundExchange?
Yes you can, and many artists do. If you want to go direct to SoundExchange, by all means do so. However, we have found that the SoundExchange registration process can be confusing and tends to trip up artists. Therefore many CD Baby artists have never registered to collect these royalties. We’re stepping up now and informing SoundExchange who the rights holder is, and collecting on behalf of unregistered artists the royalties we can.