KOSIGN VS. SOUNDEXCHANGE: UNDERSTANDING THE DIFFERENCES IN MUSIC ROYALTIES
In today's music industry, knowing where your royalties come from and who's actually responsible for collecting them is essential. If you're a songwriter, producer, or artist, you've likely come across both KOSIGN and SoundExchange. While both play critical roles in helping songwriters get paid, they handle completely different sides of the royalty equation.
Here's what you need to know.
WHAT IS SOUNDEXCHANGE?
SoundExchange is the sole organization designated by the U.S. Copyright Office to collect and distribute digital performance royalties for copyrighted sound recordings. These royalties are generated when recordings are played on non-interactive digital audio transmissions, like satellite music services (such as SiriusXM), internet radio, and streaming musical content on platforms that use automatic licenses.
SoundExchange collects royalties and pays performance royalties to featured artists, non-featured artists, record labels, and other rights owners tied to the sound recording itself. These digital royalties are governed by statutory licenses set by the Copyright Royalty Board, which means the rates and rules are regulated, not negotiated.
They also maintain a copyright database to help match usage to rightful owners, and SoundExchange Direct is their free tool that allows rights holders to submit ownership claims and manage payouts.
But - and this is important - SoundExchange only covers the recording side. If you write or co-write music, you're missing out on an entire layer of royalty income if you stop there.
WHAT IS KOSIGN?
KOSIGN is a flexible publishing admin platform powered by Kobalt. It's built specifically for independent artists, producers, and songwriters looking to collect their global publishing royalties. KOSIGN helps songwriters collect the other side of the royalty picture - the composition side - using proprietary music tech solutions and a global infrastructure.
When your music streams or plays, two copyrights are involved: one for the sound recording, and one for the underlying composition. SoundExchange handles one. KOSIGN handles the other.
KOSIGN collects all mechanical and performance royalties from the composition side. The platform uses music data exchange tools to track your earnings by song, territory, and source, offering real-time transparency into your catalog.
It's also completely flexible; no long-term lock-ins, no forced catalog transfers, and quarterly payments directly to your bank through Stripe. Artists have full control over what they send in, with the ability to move at any time. This makes it easier for independent artists and music publishers to evolve with the future of music.
To learn more about KOSIGN's technological advantages, you might find What Makes KOSIGN's Technology the Most Trusted Platform for Songwriters? informative.
