The Copyright Royalty Judges have issued a decision on how to interpret a regulation about “Gross Proceeds” for royalty payments under the 17 U.S.C. 112 license. This interpretation was needed due to a dispute between SoundExchange and Music Choice about how much Music Choice should pay in royalties for using digital sound recordings in business establishments. The Judges concluded that all fees and payments should be considered in these "Gross Proceeds," except certain in-kind payments, which only count if they're strictly for helping with the business service's operation. This decision was made to clarify the ambiguity in the existing regulations and ensure fair compensation for the use of music in business settings.
Simple Explanation
The judges made a decision on how much money a company needs to pay when it plays music in stores, saying all money it earns counts, except for things that help run the service. This ensures everyone gets paid fairly when their music is used.