What is SoundExchange and what does it cover?

• A. The US performing rights organization responsible for live venues.
• B. The US collective management organization for non-interactive digital radio.
• C. An organization handling mechanical rights.
• D. A European licensing agency.

Answer: (B)

SoundExchange is the U.S. collective management organization that collects and distributes digital performance royalties for sound recordings on non-interactive digital services. This means streaming and digital radio formats where listeners can’t choose each track directly (like certain non‑interactive streams) pay royalties for the use of the actual recordings, and SoundExchange distributes those payments to recording artists and rights holders. It does not license or collect for live performances (that’s handled by performing rights organizations such as ASCAP, BMI, or SESAC) and it does not handle mechanical rights—the licenses to reproduce songs in formats like CDs or downloads (that's handled by other entities). It’s a United States–based system; licensing in Europe is managed by regional agencies there.