2015-11-12T11:37:00-06:00 2014-12-31 BDO USA LLP 8401 GREENSBORO DRIVE SUITE 800 MCLEAN VA 22102 990 2014-01-01 760742496 SOUNDEXCHANGE INC % ANJULA SINGH SOUN 2026405858 733 10th Street NW WASHINGTON DC 20001 ANJULA K SINGH CFO 2026405858 2015-11-12 true Joyce Underwood P00022361 7038930600 2014 2016-02-25 16:41:14Z Michael J Huppe SAME AS C ABOVE WASHINGTON DC 20001 42457320 false X WWW.SOUNDEXCHANGE.COM X 2003 DE SoundExchange's primary exempt purpose is to collect and distribute to collect and distribute royalties for sound recording copyright owners, featured artists, and non-featured artists. 18 18 171 19 0 0 0 34267937 41323975 531192 1133345 0 0 34799129 42457320 0 0 0 0 12676421 15789627 0 0 0 21775239 26420511 34451660 42210138 347469 247182 438678370 431620766 437622189 430564585 1056181 1056181 X SoundExchange is the independent nonprofit collective management organization that collects and distributes digital performance royalties to artists and sound recording copyright owners when content is played on non-interactive digital radio. This includes recordings and soundtracks made by actors, comedians and spoken word artists in addition to musicians. SoundExchange is dedicated to helping the music and creative community thrive in the digital age. The organization represents recording artists - from unsigned a cappella to acid rock to multi-platinum stars and master rights owners including major and independent record labels. It's SoundExchange's job to ensure that all artists and rights owners are fairly compensated when their work is broadcast by non-interactive digital radio. We are committed to advancing creative growth and have delivered more than $2 billion in digital royalties to the artists and rights owners. The organization is authorized by the U.S. Copyright Office to false false SoundExchange is the independent nonprofit collective management organization that collects and distributes digital performance royalties to artists and sound recording copyright owners when content is played on non-interactive digital radio. This includes recordings and soundtracks made by actors, comedians and spoken word artists in addition to musicians. SoundExchange is dedicated to helping the music and creative community thrive in the digital age. The organization represents recording artists - from unsigned a cappella to acid rock to multi-platinum stars and master rights owners including major and independent record labels. It's SoundExchange's job to ensure that all artists and rights owners are fairly compensated when their work is broadcast by non-interactive digital radio. We are committed to advancing creative growth and have delivered more than $2 billion in digital royalties to the artists and rights owners. The organization is authorized by the U.S. Copyright Office to collect and distribute royalties paid by more than 2,500 digital radio services under the statutory licenses set forth in Sections 112 and 114 of Title 17 of the United States Code. As the sole entity designated by the U.S. Copyright Office to receive payments from digital radio services operating under statutory license, SoundExchange represents the interests of all copyright owners and artists whose sound recordings have been performed. In FY 2014, SoundExchange collected royalties from various classes of digital radio licensees, including pre-existing subscription services, pre-existing satellite digital audio radio services, internet-only webcasters, broadcast simulcasters and noncommercial entities. SoundExchange also administers non-statutory licensing arrangements between sound recording copyright owners and services performing the works of those sound recording copyright owners and collects and distributes royalties received from foreign collective management organizations on behalf of its members. Being a trusted resource, SoundExchange is the center of digital music and at the intersection of music and technology, and is committed to delivering exceptional service. SoundExchange's advocacy efforts are focused on protecting the long-term value of music and the rights of the creators of sound recordings, the recording artists who perform them and the record labels who invest in them. We believe everyone involved in the creative process that brings music to life deserves to be fairly compensated. false false false false false false false false false true false false false true true true false false false false false false false false false false false false true false false false false false true false false false false false false false false true 29717 0 true 171 true false false false false false false X 18 18 false false false false false false false true false false false false true true true true false true true false DC X ANJULA SINGH 2026405870 733 10TH STREET NW 10TH FL WASHINGTON DC 20001 JAY L COOPER DIRECTOR 1.0 0.0 X 0 0 0 DUNCAN CRABTREE-IRELAND DIRECTOR 1.0 0.0 X 0 0 0 ANDREA FINKELSTEIN DIRECTOR 1.0 0.0 X 0 0 0 RAY HAIR DIRECTOR 1.0 0.0 X 0 0 0 JEFF HARLESTON DIRECTOR 1.0 0.0 X 0 0 0 MICHAEL HAUSMAN DIRECTOR 1.0 0.0 X 0 0 0 JIM MAHONEY FORMER DIRECTOR 1.0 0.0 X 0 0 0 STEVEN MARKS DIRECTOR 1.0 0.0 X 0 0 0 WALTER F MCDONOUGH DIRECTOR 1.0 0.0 X 0 0 0 ALASDAIR MCMULLAN DIRECTOR 1.0 0.0 X 0 0 0 KENDALL MINTER Director 1.0 0.0 X 0 0 0 MOLLY NEUMAN DIRECTOR 1.0 0.0 X 0 0 0 PATRICK RAINS DIRECTOR 1.0 0.0 X 0 0 0 MARTHA REEVES DIRECTOR 1.0 0.0 X 0 0 0 PERRY RESNICK DIRECTOR 1.0 0.0 X 0 0 0 PAUL ROBINSON DIRECTOR 1.0 0.0 X 0 0 0 CARY SHERMAN DIRECTOR 1.0 0.0 X 0 0 0 TOM SILVERMAN DIRECTOR 1.0 0.0 X 0 0 0 DARIUS VAN ARMAN DIRECTOR 1.0 0.0 X 0 0 0 MICHAEL J HUPPE PRESIDENT & CEO 40.0 0.0 X 977386 0 31430 JONATHAN BENDER CHIEF OPERATING OFFICER 40.0 0.0 X 383699 0 30450 Charles Colin Rushing SENIOR VP & GENERAL COUNSEL 40.0 0.0 X 365582 0 35450 ANJULA SINGH Chief Financial Officer 40.0 0.0 X 340884 0 19795 SCOTT DAY CHIEF TECHNOLOGY OFFICER 40.0 0.0 X 359149 0 18020 Julia Massimino VICE PRES Global Public Policy 40.0 0.0 X 286477 0 28835 BARRY LEVINE VICE PRES Industry Relations 40.0 0.0 X 261568 0 12175 TIMOTHY DADSON ASSISTANT GENERAL COUNSEL 40.0 0.0 X 219997 0 12422 Bradley Prendergast Senior Counsel 40.0 0.0 X 215475 0 10977 FRED ROBERT RIES DIRECTOR IT 40.0 0.0 X 207912 0 27396 3618129 0 226950 36 false true false Munger Tolles Olson LLP 355 South Grand Avenue LOS ANGELES CA 90071 Legal 3062347 Daniel L Rubinfeld 44 El Carnino Real BERKELEY CA 94705 legal 1686608 Ten Mile Square Technologies 803 West Broad Street Suite 210 FALLS CHURCH VA 22046 IT CONSULTING 1573741 TIGER TEAM CONSULTING LLC 11781 LEE JACKSON MEMORIAL HWY STE FAIRFAX VA 22033 IT CONSULTING 1565804 Jenner Block LLP 353 N Clark Street CHICAGO IL 60654 Legal 1336948 18 0 ROYALTY COLLECTION 900099 18527341 18527341 UNCLAIMED FUNDS INCOME 900099 16967452 16967452 BAD DEBT RECOVERY 900099 3773442 3773442 COST RECOVERY FEES 900099 2055740 2055740 41323975 1133345 1133345 0 0 0 0 0 0 0 0 0 0 42457320 41323975 1133345 0 0 0 0 2561845 0 11080812 451075 852133 843762 0 1685137 107642 279191 0 400467 1529142 99190 429466 5640887 0 2247513 882918 0 239345 0 0 5960555 196134 BAD DEBT 3773442 COST RECOVERY 2055740 ALL OTHER EXPENSES 893742 42210138 100 100 0 0 0 0 109537765 130229309 0 0 0 0 0 0 0 0 847006 966498 24134032 9335145 11428936 14798887 307587836 269807880 0 0 0 0 0 0 9276727 15818092 438678370 431620766 3491995 5584012 0 0 3389287 3245602 0 0 0 0 0 0 0 0 0 0 430740907 421734971 437622189 430564585 X 1056181 1056181 0 0 0 0 1056181 1056181 438678370 431620766 247182 -247182 X X false true X true false 2947631 631485 2316146 2685530 1532330 1153200 18500871 7171330 11329541 14798887 0 CAPITAL LEASES PAYABLE 187953 FUNDS HELD IN AGENCY (PART XIV) 421547018 421734971 X 41809671 -247182 -247182 42056853 400467 400467 42457320 41809671 41809671 400467 400467 42210138 Part X, Line 2: Under ASC 740-10, Accounting for Uncertainly in Income Taxes, an organization must recognize income tax benefits for income tax positions taken or expected to be taken in a tax return, only when it is determined that the income tax position will more-likely-than-not be sustained upon examination by taxing authorities. The Organization analyzed tax positions taken for filing with the Internal Revenue Service and all state jurisdictions where it operates. The Organization believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the Organization's financial condition, results of operations or cash flows. Accordingly, the Organization has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions at December 31, 2014 and 2013. The Organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any open tax periods. The Organization believes it is no longer subject to income tax examinations for years prior to 2011. Part X - Funds held in agency Royalties payments are due 45 days after the end of the month. A receivable and corresponding liability are recorded for royalties relating to 2014, but collected after December 31, 2014. The Funds Held In Agency balance of $421,547,018 at December 31, 2014 included a $127.7 million accrual for such royalties. X X X true true X X X X false false false MICHAEL J HUPPE PRESIDENT & CEO 797838 0 175000 0 4548 0 13000 0 18430 0 1008816 0 0 0 JONATHAN BENDER CHIEF OPERATING OFFICER 319379 0 60000 0 4320 0 13000 0 17450 0 414149 0 0 0 Charles Colin Rushing SENIOR VP & GENERAL COUNSEL 316043 0 45000 0 4539 0 13000 0 22450 0 401032 0 0 0 ANJULA SINGH Chief Financial Officer 293373 0 43000 0 4511 0 13000 0 6795 0 360679 0 0 0 SCOTT DAY CHIEF TECHNOLOGY OFFICER 296623 0 58000 0 4526 0 13000 0 5020 0 377169 0 0 0 Julia Massimino VICE PRES Global Public Policy 257461 0 18000 0 11016 0 13000 0 15835 0 315312 0 0 0 BARRY LEVINE VICE PRES Industry Relations 240999 0 20000 0 569 0 12175 0 0 0 273743 0 0 0 TIMOTHY DADSON ASSISTANT GENERAL COUNSEL 210404 0 9000 0 593 0 10562 0 1860 0 232419 0 0 0 Bradley Prendergast Senior Counsel 201898 0 13000 0 577 0 10137 0 840 0 226452 0 0 0 FRED ROBERT RIES DIRECTOR IT 194842 0 12500 0 570 0 9896 0 17500 0 235308 0 0 0 Part I, Line 1a: OUR POLICY IS NOT TO PROVIDE FOR FIRST CLASS TRAVEL, HOWEVER BASED ON EXTENUATING CIRCUMSTANCES WE DID PERMIT SUCH TRAVEL FOR A FEW INSTANCES IN 2014. Our President is permitted spousal companion travel reimbursement of up to $5,000 annually. Where applicable, the tax on short-term and long-term disability is grossed up. TOOLSHED INC see Part V 112618 CONSULTING SERVICES false Schedule L, Part IV, column (b) Entity (Toolshed, Inc.) is more than 35% owned by Dick Huey, a former director of Soundexchange. Form 990, Part I, line 5: As of December 31, 2014 SoundExchange had 147 employees. Form 990, Part VI, Section A, line 8b: SoundExchange does not keep written minutes of all of its committee meetings. In particular, we do not keep minutes of our Licensing Committee or Finance Committee meetings due to the sensitivity of matters discussed in those meetings. Our governing documents make clear that minutes are not mandatory. We do keep written minutes of all Board meetings. Form 990, Part VI, Section B, line 11: Management will review the 990 prior to filing, and a draft is provided to the finance committee prior to filing. A copy of the Filed 990 will be provided to the full Board of Directors. Form 990, Part VI, Section B, Line 12c: The SoundExchange Governance Manual requires the disclosure of any potential conflicts of interest. In addition, the members of the Board of Directors and officers of the Company complete an annual questionaire that asks if there have been any conflicts of interest in the reporting year. Form 990, Part VI, Section B, Line 15: The Compensation Committee, comprising of members of the Board of Directors, considers external salary data, scope and complexity of the responsibilities of the position, in determining, and recommending to the full board for approval, the President and CEO's executive compensation. The President and CEO assesses compensation for the officers and other Executive team members by utilizing relevant external comparable salary data for like responsibilities at not-for-profit organizations, experience and annual review process. Form 990, Part VI, Section C, Line 19: The governing documents and conflict of interest policy are not made available to the public. A non-GAAP version of the Financial statements is made available on SoundExchange's website. Form 990, Part XII, Line 2c: Oversight of audit: There have been no changes during the year in the process for oversight of the audit of the financial statements.