SoundExchange Audits Radio Groups, Webcasters On Royalty Payments
January 22, 2015 at 11:43 AM (PT)
SOUNDEXCHANGE has notified the FEDERAL REGISTER that it would be auditing the royalty payment records of iHEARTMEDIA, CBS RADIO and LIVE365, among others, BROADCASTLAWBLOG.COM reports. This is a somewhat routine process, as SOUNDEXCHANGE checks out several webcasters each year; any service can not be audited more than once every three years.
An independent CPA does the audit, then gives a report on what it found to the music service for comment. From there, SOUNDEXCHANGE and the service settle any discrepancies identified by the audit. SOUNDEXCHANGE pays for the audit, unless the audit determines that the service underpaid by 10% or more, in which case the costs can be transferred to the service.
SOUNDEXCHANGE determines who to audit on its own. The results of the audits are not made public.