Copyright Ownership - Distribution & Compensation

Who Owns the Music and how they get compensated:

Any time that you broadcast music programming over the Internet, you must secure a license in both the musical work and the sound-recording. In other words, every record, every CD and MP3 in your music library is comprise of two copyrights.

Even though it is possible to negotiate license agreements with each individual copyright holder, it is extremely impractical. Compulsory licensing bypasses such obligations by providing a guaranteed, non-negotiable right to public performance based on rates and terms set by the U.S. Copyright Act.

In the United States, there are five established performing rights societies to administer compulsory licensing: ASCAP, BMI, SESAC, Royalty Logic, and SoundExchange.