If you plan on making money through digital sales of individual tracks of your music, you are going to need an ISRC code. An ISRC (International Standard Recording Code) is a unique 12-character alphanumeric ‘digital fingerprint’ that stays with an individual recorded track forever, regardless of any changes in ownership of the track. ISRC’s are added to the recording during the mastering stage, or at the encoding stage by whichever digital aggregator/distributor you are using to deliver your recorded content to the retailer.

ISRC codes are used to trace sales of single tracks through digital distribution outlets like iTunes, as well as help to trace the owner of a recording who is owed royalties when their recording is used by Internet and Satellite radio.

A UPC (Universal Product Code or Barcode) represents the entire digital product, as opposed to just an individual digital track. UPC codes are typically found on the back of the sound recording’s physical packaging, and are used by brick and mortar retailers and online outlets to gather and track sales information for the entire product. Soundscan compiles UPC sales data from thousands of retail outlets in the U.S. and Canada (as well as sales from artists on tour) to compile its weekly list of music sales. These reports are an important ingredient in the weekly Billboard charts, and also factor into many A&R departments decisions to sign an artist.

You can apply for an ISRC code from the RIAA. Bar codes are a bit trickier. It is possible for you to register as a company and receive your own UPC prefix from the UCC, but it is probably not cost effective. An easier way for an independent artist to get a bar code is to work with a distributor that has already purchased a company code, and can give UPC barcodes to the albums they are distributing. 

Every songwriter, composer, and publisher has exclusive rights to their own work whether they have registered it with the copyright office or not. Every time their music will be used by another person, establishment, or production company, these authors are entitled to royalties to be paid by those who will use their work. However, it may be a daunting task for each composer or publisher to deal with every person or company who wants to “borrow” their music for a specific purpose. This is the reason why performing rights organizations were formed.

Duties of the Performing Rights Organizations


Performing Rights Organizations, or PROs, are groups that have composers and music publishers as their members. These Performing Rights Organizations are the ones responsible for tracking and collecting performing rights royalties for the use of their members' music. Performing Rights Organizations collect only non-dramatic performance rights, though. This means that using the music for theatrical purposes will need to be negotiated directly with the publisher or author of the music to be used. Examples of non-dramatic performances are radio and TV broadcasts, films, commercials, and use of music in establishments.

Performing Rights Organizations monitor radio broadcasts for the use of their members' music. For TV and films, PROs track the use of music through cue sheets. Producers fill out the cue sheets and submit them to the Performing Rights Organization with a member who owns the copyright of the music listed in the sheet. If the sheet contains music owned by members from different Performing Rights Organizations, the cue sheet needs to be submitted to each Performing Rights Organization.

PROs Are Serious About Their Getting Their Royalties


Performing Rights Organizations are quite strict in implementing their policies. Those who choose to ignore their policies, much more their presence, may be facing more problems in the future. Performing Rights Organizations are said to have sent lawyers at times to demand payment for the royalties from entities who choose not to pay the fees for using the music still under copyright. Some even claimed that Performing Rights Organizations have sent US Marshals to stores and took money from their registers as payment for the use of their members' music.

Licensing Process


Music still with exclusive rights owned by the composer or publisher requires performing rights royalties every time they will be used in public. However, since it can be very tedious for a user to acquire the rights for each song to be used, the performing rights organizations made a fee structure that would make getting a license easy for the broadcasters or establishments who will use the music.  Performing Rights Organizations have established that users only need to pay an annual license fee for the public use of the songs owned by their members. The annual fee to be paid depends on different factors. For example, the annual fee to be paid by an establishment playing music depends on the size of the establishment, the number of speakers used to play the music and whether pre-recorded music will be used or a live performance will be done. Broadcasting music over radio or TV will require much higher annual license fees than those paid by stores. Generally, Performing Rights Organizations base the annual fee on the extent of public reach of the music to be played or, in other words, the number of people who will hear the music.  The shows, commercials and segments seen on TV and heard on the radio always have producers. These producers are the ones choosing the music to be used in these performances. However, they are not the ones broadcasting them or showing them in public. Hence, broadcasters are the ones responsible for paying the annual license fees to the Performing Rights Organizations for broadcasting the shows and commercials with music owned by the Performing Rights Organizations' members.  As an overview of the annual license fee charged by Performing Rights Organizations, let us use the example of a retail store playing some music from CDs through one speaker. If the store area is about 2,000 square feet and the songs in the CD are owned by members of the 3 Performing Rights Organizations in the US (ASCAP, BMI and SESAC), the store owner needs to pay a total of about $524 as annual license fees ($190 to ASCAP; $182 to BMI; and $152 to SESAC). The bigger the store, the more it pays to the Performing Rights Organizations. If live music is played instead of pre-recorded songs in a CD, a certain amount is added per live performance.  Royalty-Free Music and Performing Rights Organizations
Royalty-free music is getting popular these days. Most people believe that they would be saving a lot more money by buying royalty-free music than the traditional ones. This may be true. However, it should also be known to the public that not all royalty-free music is also free from paying performing rights. It can really sound complicated and some may think that it doesn't make sense, but it is true.  Composers and publishers friendly enough to the users offer their works royalty-free. This means that those who want to use their music for any purpose need only to pay a one-time fee, which already allows unlimited use of the music by the buyer. However, if the music will be used in a public performance, it still needs to be reported to the Performing Rights Organizations and a license from them is still required.

The owners of the copyright claims their music to be royalty-free because it is indeed so. No recurring royalties will be asked from the buyer with each use of the music. If it will be used in public, it is in the assumption of the composer or publisher that the buyer already has license acquired from the Performing Rights Organizations and is just adding more music to his list. The buyer, therefore, needs to pay the one-time fee for the royalty-free music and the annual license fee to the Performing Rights Organizations in order to use the music in a public performance. The composer, on the other hand, gets the one-time fee for his royalty-free music and a portion of the license fee paid to the Performing Rights Organizations for the public use of the music. In essence, the buyer still needs to shell out a lot of money despite the fact that he is buying a royalty-free music.

The good news is there are some companies and stores offering royalty-free music which do not require licenses from Performing Rights Organizations to be played in public. How is this so? The composers or publishers who own the royalty-free music offered in these companies are not members of any of the Performing Rights Organizations; therefore, there is no need to report their music to any of these organizations. One good example of a royalty-free music store that does not require its users to report the use of music to any Performing Rights Organization is Partners In Rhyme (www.partnersinrhyme.com).

Performing Rights Organizations Worldwide


Most countries have their own performing rights organizations that are responsible for collecting license fees for the use of their members' music. Most composers and publishers from the US are members of the 3 Performing Rights Organizations in the US, namely the American Society of Composers, Authors and Publishers (ASCAP); Broadcast Music, Inc (BMI); and the Society of European Stage Authors and Composers (SESAC). These musicians in the US are also represented by the Performing Rights Organizations in different countries. Below is a list of countries, other than the US, that also have their own performing rights organizations:

World Wide Performing Rights Organizations

Argentina:  SADAIC

Australia: Performing Right Association (APRA)


Austria:  Autoren, Komponisten, und Musikverleger (AKM)


Belgium:  Belgian Society of Authors, Composers and Publishers (SABAM)


Brazil:  União Brasileira de Compositores (UBC)

Bulgaria:  Musicautor

Brazil:  Escritório Central de Arrecadação e Distribuição (ECAD)


Canada:  Society of Composers, Authors and Music Publishers of Canada (SOCAN)


Chile:  Sociedad Chilena del Derecho de Autor (SCD)


Colombia:  La Sociedad de Autores Y Compositores de Colombia (SAYCO)


Croatia:  Hrvatsko Dru_tvo Skladatelja (HDS)


Czech Republic:  Ochrann_ Svaz Autorsk_ (OSA)

Denmark:  KODA

Estonia:  Eesti Autorite Ühing (EAÜ)


Finland:  TEOSTO, La Sacem
France:

Germany:  Gesellschaft für musikalische Aufführungs (GEMA)


Greece:  AEPI


Hong Kong:  Composers and Authors Society of Hong Kong (CASH)

Hungary:  Artisjus

Iceland:  STEF


India:  India Performing Rights Society (IPRS)


Ireland:  Irish Music Rights Organisation (IMRO)


Israel:  Composers, Authors and Publishers Society of Israel (ACUM)


Italy:  Società Italiana degli Autori ed Editori (SIAE)


Japan:  Japanese Society for Rights of Authors, Composers and Publishers (JASRAC)


Lithuania:  Lietuvos autori_ teisi_ gynimo asociacijos agentüra (LATGA-A)


Malaysia:  Music Authors' Copyright Protection (MACP)


Mexico:  Sociedad de Autores y Compositores de Musica (SACM)


Netherlands:  BUMA

New Zealand:  Australasian Performing Right Association (APRA)


Norway:  TONO


Poland:  ZAIKS


Portugal:  Sociedade Portuguesa de Autores (SPA)

Russia:  RAO

Singapore:  COMPASS

South Africa:  SAMRO

Spain:  SGAE

Sweden:  STIM

Switzerland: SUISA

Trinidad & Tobago:  COTT

Turkey:  MESAM

Uruguay:  AGADU

USA:  ASCAP, BMI, SESAC

United Kingdom:  PRS

Nielsen SoundScan is an information system that tracks sales of music and music video products throughout the United States and Canada. Sales data from point-of-sale cash registers is collected weekly from over 14,000 retail, mass merchant and non-traditional (on-line stores, venues, etc.) outlets. Weekly data is compiled and made available every Wednesday. Nielsen SoundScan is the sales source for the Billboard music charts.

Frequently Asked Questions

How do I register a title with Nielsen Soundscan?

To register with Nielsen SoundScan, you must fill out and submit a Title Addition Form to the Database Department. Forms must be submitted at least three weeks before the project’s release date.


What is the fee to register a title?

There is no fee to register a title in the Nielsen SoundScan database.


How long does it take for a title to be registered?

Once we receive the Title Addition Form, it can take up to 10-15 business days to be registered. Please submit your Title Addition Form at least three weeks before the project's release date.


How can I get an ISRC or UPC code?

Nielsen SoundScan does not provide ISRC or UPC codes/barcodes. Please read the following carefully:
ISRC
If you are based in the United States, you may apply for an ISRC Registrant code through the RIAA. You can also email them at isrc@riaa.com. If you are not based in the United States, please visit the IFPI at www.ifpi.org to find the ISRC Agency in your territory.
UPC/Bar Codes
For UPC or Barcode information, contact GS1 at 937-435-3870. You can also email them at info@gs1us.org or visit them on the web at http://barcodes.gs1us.org. 
*UPC - Universal Product Code
*ISRC - International Standard Recording Code
*RIAA - Recording Industry Association of America
*IFPI - International Federation of the Phonographic Industry 


If a title is sold before it is registered with Nielsen SoundScan, will those sales be applied?

No, we are a weekly tracking service, collecting data sold from the previous Monday through Sunday.


If I register with Nielsen SoundScan, am I also registered with Nielsen BDS?

No, there is a separate registration process for Nielsen BDS. Please visit www.bdsonline.com for more information.


How can Concert, Venue, or Internet sales be tracked?

In order to report Venue or Internet sales to Nielsen SoundScan, you must meet the criteria for reporting. Please visit the 'Report Venue Sales' section of this website for more information.


How do I become a Nielsen SoundScan reporting store?

The store must have a Point of Sales (POS) Inventory System, as well as Internet access. Please visit the 'Become A Nielsen Soundscan Retail Reporter' section of this website for more information.


Who uses Nielsen SoundScan data?

Nielsen SoundScan clients include all major and most independent record companies, distribution companies, artist managers, booking agents, concert promoters, venue owners, traditional retailers, online retailers and digital delivery companies. Since March 1, 1991, Billboard Magazine charts have been constructed directly from Nielsen SoundScan data. MTV, VH1, CMT and all major media regularly use Nielsen SoundScan data as well.


Who reports sales to Nielsen SoundScan and is there a list of reporting Retailers available?

Nielsen SoundScan collects point-of-sales information from Retail, Mass Merchant, Independent Retail, Internet Retail sites, Venues, Mail Order and Digital Download providers. Due to confidentiality agreements with our information providers, we cannot supply a list of reporting stores or web sites.


How do I receive my royalties?

SoundScan does not provide any payment for royalties. Please contact one of the performing rights societies such as BMI, SESAC or ASCAP.


I've just written some songs and recorded a demo tape. What should I do to protect (i.e., copyright) my work? How do I go about doing it?

The answer to this question involves a brief overview of United States copyright law, and includes some practical tips on how to register a copyright with the U.S. Copyright Office.

1. WHAT IS A COPYRIGHT?

First, a copyright is an exclusive right owned by the author of a work. A copyright owner can exclude others from reproducing, distributing, publicly performing or displaying their work. A copyright owner can also prevent others from creating a "derivative work" (such as a song using digital samples) based upon the copyrighted work. Except for certain instances permitted under the Copyright Act, violation of one of these exclusive rights may constitute copyright infringement.

3. HOW DO I REGISTER MY COPYRIGHT?

To register a copyright, it is necessary to file the appropriate forms with the U.S. Copyright Office, along with a registration fee (currently $30 per registration form). For most works published in the United States, it is also necessary to "deposit" two copies of the registered work with the Copyright Office, which are then filed with the Library of Congress. According to the Copyright Act, failure to deposit copies of your work when published may result in fines.  Here's where things become tricky. A recording of your song actually contains two copyrights. One copyright consists of the "Sound Recording" of your composition. A sound recording consists of the actual sounds embodied on your audiotape, whether these include as singing, musical instruments, industrial noises or exotic birdcalls.  Another copyright also exists in the "Musical Work," or composition, embodied on the Sound Recording. The composition may be purely instrumental, or perhaps include a combination of lyrics and music. A Musical Work may be copyrighted whether it is contained on audiotape or printed out on sheet music. Of course, it is also possible to copyright lyrics separately as a "Literary Work" with the Copyright Office.  The above distinctions are important because they determine which registration form to use when registering your work with the Copyright Office. To register a sound recording, you should use a Form SR. To register a composition, you need a Form PA. A literary work (such as song lyrics) may be registered using a Form TX.  It is possible to use one Form SR to register both a sound recording and underlying musical compositions if the copyright claimant for both works is the same. It is also possible to register several songs using a single registration form where the copyright claimant for each work is the same. For instance, an author could describe the work being registered on Form SR as a "Compilation of Words, Music, Performance and Recording." However, the better method is to submit a separate registration form for each song. If someone were to later conduct a title search for a particular song that was registered using the above example, your song may not show up on the Copyright Office computer. This could lead to the erroneous conclusion that your song has not been registered.

4. HOW DO I OBTAIN COPYRIGHT REGISTRATION FORMS?

Copyright forms and circulars maybe obtained free of charge by calling the U.S.  Copyright Office Hotline at (202) 707-9100 and leaving a message on their voice mail machine. These may also be obtained through the Copyright Office Web site. The Copyright Office also makes available several publications on copyright law. If you don't know the name of a particular publication, you can try calling the Copyright Office's prerecorded information line at (202) 707-3000.

5. WHY SHOULD I REGISTER MY COPYRIGHT?

Although a song is copyrighted as soon as it is created and "embodied" in some form, there are several important reasons why your copyright should be registered with the U.S. Copyright Office.  Copyright law permits a copyright owner to collect "actual" damages such as lost income which may be result from an infringement. "Statutory" damages may also be available by statute in the Copyright Act, and they range from $500 to $30,000 per infringing act, or up to $150,000 per infringing act if it is shown that the infringement was "willful."  If the copyright was NOT registered before the infringement or within three (3) months after the work was "published," a copyright owner may collect only "actual" damages from an infringer. However, if a copyright is registered before an infringement occurs or within three (3) months of publication, it is possible to obtain "statutory" damages and attorneys' fees from a copyright infringer.  The availability of statutory damages is extremely important if someone infringes your work. If a song was not registered within 3 months of its "publication" or before the infringement occurs, an attorney may be unwilling to pursue the infringer unless you have sustained extensive monetary damages or unless you are willing to pay an expensive hourly rate for that attorney.  However, if a work has been properly registered, an attorney may be willing to handle your case on a contingency basis. Because registration permits statutory damages of up to $150,000 if a willful infringement is found, it is not always necessary to show you incurred actual damages to collect money from an infringer. Also, because registration enables you to recover attorney fees and costs from an infringer, your attorney will have added incentive to pursue a copyright infringement on your behalf.

6. WHAT IS A COPYRIGHT NOTICE?

Finally, be sure to place a copyright notice on all copies of the copyrighted work you distribute. While copyright notice it is no longer necessary for works published since 1989, it still can provide added protection for your work. A proper copyright notice consists of the following elements:

1) C-in-a Circle (or the word "Copyright" or the abbreviation "Copyr."


2) The year of first publication


3) The name of the copyright owner

However, note that copyright notice for Sound Recordings differs slightly. The copyright symbol for a Sound Recording is actually the letter "P (for "Phonorecord") in a circle, followed by the year of publication and the copyright owner's name. The Copyright Act does not permit you to spell out "Phonorecord," so remember that a P-in-a-Circle is necessary here.  Immediately following the above copyright notice, you should also add the words "All Rights Reserved." This will help provide additional protection in foreign jurisdictions.  Copyright notice should be written in a place that will provide reasonable notice to others, such as the outer sleeve of your CD or cassette. A copyright notice should be placed on all copies of your work, even demos given to friends and acquaintances. This is because the Copyright Act provides some protection to "innocent infringers," i.e., persons who claim they didn't knowingly infringe the work because of the lack of a copyright notice.

CONCLUSION

Registering your copyright is the best way to protect yourself and your music. You probably don't need to register every band jam session or low-fi portastudio experiment. However, you should register your copyright if you are shopping a demo tape, receiving radio airplay or if your work is otherwise commercially available.