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soundtracks and who owns those digital rights for each different release of a single recording used in
various albums complicates reporting and payments to the proper parties.
The volume of repertoire available and the variety of means by which consumers access and consume
music digitally have made proper management of copyright ownership paramount. To ensure accurate
accounting and royalty payments, the rights holders and the Collective Rights Organizations domestically
and internationally recognize the need for sophisticated unique identifiers and uniform standards. The
domestic and international music communities collectively developed the best practices standards that
are currently in place, namely the ISO-certified key identifiers: the International Standard Name
Identifier “ISNI” (ISO 27729), the International Standard Recording Code “ISRC” (ISO 3901) for sound
recordings, and the International Standard Works Code “ISWC” (ISO 14707) for musical works.
The primary solution to getting the correct copyright attribution for all digital tracks (including tracks for
which no payments are being made so they can be researched) is to require all digital distribution
services using sound recordings to report ISRC identifiers (or ISNI when ISRC is not available) for every
track a service uses and have this unique identifier included on every SOA, ROU, and statement of
payment.
Currently, most digital services, other than preexisting subscription services, (“PSS”) are allowed to
report either the ISRC or the album title and marketing label for a recording. This is in contrast to the
PSS, which are required to report all three data elements where available and feasible. Because these
alternatives are available to services other than PSS, SoundExchange often receives a bare minimum of
information for matching even when all the required elements are reported, which is frequently
insufficient to report and pay the correct party. In addition, many services often omit or make errors in
one or more of the required data elements. A2IM believes the change that has the potential for the
greatest positive effect and is the easiest for services to implement would be to require all digital
services to report the ISRC where available (the ISNI where it is not), as well as, corresponding album
title, copyright ownership label and marketing label as the PSS are required to do. We add the
ownership label requirement, in addition to the marketing label because, depending on the music label-
artist contract, certain digital rights sometimes belong to the copyright ownership label and not the
marketing label. Additionally, sometimes a third-party distributor may be designated as the recipient of
royalties.
It must be understood that while ISRC and album/label are positioned in the current regulations as
equivalent alternatives, they are by no means equally desirable. ISRC is a unique identifier for sound
recordings. When an ISRC is reported accurately, it clearly identifies the relevant recording in a way that
no other single data element can. By contrast, use of album/label alone is especially a problem for
compilations, as we note above, as well as, for multiple recordings of the same song by an artist.
Requiring both is the optimal solution, since the identical song with the same ISRC can be used in
numerous album releases with different ownership/licensing rights for each.
ISRCs are widely available to digital services. ISRCs are currently used by record companies and most
digital distribution companies for the purposes of rights administration, including reporting purposes in
direct license arrangements between record companies and webcasting and on-demand services. Larger
services that receive electronic copies of recordings from record companies and digital distribution
companies typically receive ISRCs as part of the accompanying metadata. To the extent services obtain
recordings from commercial products, the ISRC generally should be encoded therein, and, when
present, can easily be extracted with widely-available software tools.