Traxsource Gives Back to the Labels:

Announces Industry First Refunds After

Entering Into A Series of Copyright Licences

In an unprecedented move for the digital music retail space, Traxsource announced today at the ADE Transparency Panel that it will be paying back any extra money previously withheld for copyright royalty payments to every label and artist they’ve ever worked with in their 11-year history.

“We are extremely happy to finally be in a position to reduce our mechanical withholdings and provide partial refunds to our partners. Our ultimate goal continues to be to do everything possible for the benefit of rights holders and content providers equally.” – Brian Tappert, Co-Founder of Traxsource

Throughout the analog age, the distribution of monies from music sales was all handled in one simple way: the record labels received the money and were responsible for paying mechanical royalties from these proceeds to the copyright societies and/or publishers. This is how mechanical royalties were paid throughout the world. With the introduction of digital downloads a dramatic shift occurred outside the USA where the copyright societies demanded to receive the publishing royalties from download sales directly from the retailers as opposed to looking to the record labels as was the case with CD and vinyl sales.

This development forced digital retailers like Traxsource to withhold and pay into escrow a percentage of the payment to labels in order to cover whatever the new mechanical royalty fees would be. For a variety of reasons, it was not entirely clear for several years what the exact amount to be paid would be and for this reason digital retailers had to withhold based on a reasonable estimate of what percentage of sales proceeds would be payable to the copyright societies and publishers. After years of negotiating licenses in a constantly evolving copyright licensing landscape, Traxsource became one of the first digital retailers to enter into licenses where possible around the world and to get a grasp on the actual percentage payable for copyright licenses. As a result, Traxsource can now give the extra money held in escrow back to the labels and music makers.

Going forward, Traxsource’s focus will be on working with the labels and publishers with an unprecedented amount of clarity and transparency.

Traxsource is the modern home for real house music. Created, built, and managed by DJs and producers with decades of experience and who are still active in today’s scene. Founded by sound engineer and musician Marc Pomeroy and club DJ Brian Tappert in October of 2004, Traxsource is one of the world’s first digital music retailers. Originally conceived as an outlet to sell releases from their own record label, Soulfuric, the website is now home to more than 20,000 labels and a staggering 250,000 artists.

The heartbeat of the company is still the old school vibe of a carefully loved and curated record shop, and it guides how tracks and labels are featured on the site. Every submission is vetted by genre managers for quality control in the same way a record shop chooses which releases to feature on their shelves. The house of Traxsource wasn’t built in a day. It was carefully crafted through decades of industry knowledge and hard work on the front lines of the scene. Traxsource’s roots can be found in the very genesis of the house music movement itself and to this day still offer a platform for truly underground artists, labels, and producers to flourish.

Get to know Traxsource: