An NOU form needs to be filled out by anyone who intends to start a webcast that will include copyrighted music. The form basically states that you will be using copyrighted material and will be paying the required license fees. It can be downloaded online, is controlled by the U.S. Copyright Office (office of public record for copyright registration and deposit of copyright material) and goes into effect the day you send it off in the mail.
This nonprofit organization was created in 2000. Its purpose is to collect royalties on behalf of its members, who are the copyright owners of sound recordings, that is, record companies and artists. Royalties to SoundExchange are applicable when a sound recording is broadcast over the Internet, in accordance with the Digital Performance in Sound Recordings Act of 1995. This relatively new law was created due to the increase in Internet radio stations and webcasts. SoundExchange has made headlines for charging higher royalty rates than terrestrial services, creating problems for webcasters big and small.
ASCAP, BMI and SESAC collect royalties on behalf of member publishers and composers when their work is performed live, on television, on the radio or broadcast over the Internet. It is up to the artist/label to decide which of these organizations they choose to join. SESAC is considerably smaller than the other two, with ASCAP being the largest. The license issued is called a public performance license (PPL), and if the music on the webcast is being streamed in more than one country, then a separate license will need to be purchased for each one.
The most straightforward cost is the NOU license, which is a one-off payment of $20 (as of January 2011). The cost of the PPL license issued by ASCAP, BMI and SESAC varies greatly depending on your usage. SoundExchange royalties depend on the number of transmissions per year (for 2010, rates were $0.0019 per performance); however, an annual minimum of $500 is required.