Recording Industry Starts Royalties Group

The Recording Industry Assn. of America (RIAA) launched a collective to distribute royalties for streamed music online, but the group already has hit a sour note with some digital-media companies and artist groups.

About 2,100 record labels and 270 recording companies will be represented by the group, called SoundExchange, which now awaits designation from the U.S. Copyright Office, said John Simson, executive director for SoundExchange.

Criticism has mounted among SoundExchange's opponents who fear the trade group will wield too much control over royalty payments in the fledgling online radio business called Webcasting.

Simson expects the U.S. agency to name it as a collection agent in proceedings that start in February.