A restatement in the context of SoundExchange reports refers to the revision and reissuance of a previously submitted royalty report to SoundExchange by a Licensee due to errors, omissions, or inaccuracies in the original data. SoundExchange is an organization that collects and distributes digital performance royalties for sound recordings. Licensees (e.g., webcasters, satellite radio providers, and digital music services) are required to submit regular reports detailing their usage of copyrighted music and the associated royalties owed. Sometimes, these Licensees must correct or adjust previous reported usage for the following potential reasons:
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- Data Errors: Mistakes in the usage data, such as incorrect song titles, artists, or durations.
- Incorrect Calculations: Errors in royalty calculations, often due to applying the wrong rates or formulas.
- Incomplete Reporting: Omission of some tracks or usage periods in the original report.
- Compliance Issues: Failure to adhere to SoundExchange’s reporting requirements or standards.
Due to potential restatements, it may result in changes to royalties owed to artists or labels, either increasing or decreasing the payment due.