§1006 Entitlement to Royalty Payments

Summary

Royalty money collected under section 1005 must be paid out, under the rules in section 1007, to copyright owners whose musical work or sound recording was included in a lawfully made recording that was distributed or publicly transmitted during the payment period, and who filed a claim under section 1007. The money is split into two funds. The Sound Recordings Fund gets 66 2/3 percent. Of that fund, 2 5/8 percent goes into an escrow account for nonfeatured musicians and 1 3/8 percent goes into an escrow account for nonfeatured vocalists. After those amounts are set aside, the rest of the Sound Recordings Fund is split 40 percent to the group named in section 1001(7)(C) and 60 percent to the group named in section 1001(7)(A). The Musical Works Fund gets 33 1/3 percent and is split 50/50 between music publishers and writers. If a group cannot agree on how to divide its share, the Copyright Royalty Judges will divide it based on how much each recording or musical work was actually distributed in the covered forms during the period.