The Orchard: SoundExchange Payments Lacking

In MARCH 2008, we conducted a comprehensive analysis of SX accounting to us. Out of the mere $31,000 paid to us during the course of three years, a paltry $1,119.78 matched songs we had registered. The rest encompassed royalties for songs where we don't hold collection rights or songs we don't even sell digitally: just completely random songs! With that in mind, note that on JUNE 6th of this year, SX posted the following on its website:

"The check's in the mail is a statement that's music to everyone's ears. Such fantasy is reality for SHELLY ESPRE, widow of the late zydeco giant BEAU JOCQUE. ESPRE will soon receive an unexpected check for $2,000 from SOUNDEXCHANGE. The good news is more zydeco and Cajun musicians could have money on the way, too."

ESPRE has apparently received about twice as much for her husband's songs as we have for our half million-song catalog. No wonder, then (at least, as we can decipher the paucity of information provided in the draft SX annual report for 2007), that despite collecting about $140 million in royalties last year, less then $40 million was distributed.

Playing politics around policy positions might be more glamorous than the blue-collar work of administering royalties, but the latter is SX's mandate. One would expect more from an organization that spent more than $10 million of artists' monies in operating expenses in 2007, including close to $3 million on salaries. An expensive lobby organization . . . especially considering SX lobbies for positions not all of its clients -- like THE ORCHARD -- agree with.