The Sound Recording Performance Complement is a rule established by the statutory license for webcasting under the Digital Millennium Copyright Act (DMCA). It outlines certain limitations on the number of tracks that can be played from a single album or by a single artist within a specific period without triggering additional royalty obligations.
Here are key points regarding the Sound Recording Performance Complement rule:
- Definition of a Sound Recording Performance Complement:
- The Sound Recording Performance Complement refers to the restrictions on the digital performance of sound recordings within a certain time frame. It is designed to strike a balance between the interests of copyright owners and webcasters.
- Limitations on Tracks from the Same Album or Artist:
- The Three Hour Rule: (A) You may not play more than three different songs from the same album and you can only play two of these three songs consecutively. (B) You can play no more than four different songs from an artist or a compilation, i.e. a greatest hits or best of album and you can only play three songs consecutively. Exceeding this limit may result in additional royalty obligations.
- Time Period for Calculation:
- The Sound Recording Performance Complement is often applied over a specific time frame, such as a three-hour period. This means that a webcaster must carefully manage the selection of tracks to stay within the prescribed limits during this time window.
- Royalty Obligations for Exceeding Limits:
- If a webcaster exceeds the permitted number of performances for a particular album or artist within the defined time frame, additional royalty obligations may be triggered. This could involve negotiating direct licenses with copyright owners or paying additional royalties to the relevant performing rights organizations (PROs).
- Compliance and Reporting:
- Webcasters are responsible for monitoring their playlists and ensuring compliance with the Sound Recording Performance Complement. Additionally, they must accurately report their music usage to the appropriate entities, facilitating the distribution of royalties to copyright owners.
- Importance of SoundExchange Reporting:
- SoundExchange is the organization responsible for collecting and distributing digital performance royalties for sound recordings. Webcasters typically report their music usage to SoundExchange, and compliance with the Sound Recording Performance Complement is crucial for accurate reporting and royalty distribution.
Webcasters need to be aware of and adhere to the Sound Recording Performance Complement rule to avoid legal issues and ensure fair compensation for copyright owners. Compliance often involves careful playlist curation and monitoring to stay within the specified limits. It’s advisable for webcasters to work closely with organizations like SoundExchange and legal professionals to ensure proper adherence to these regulations.