In the United States, The Audio Home
Recording Act of 1992 brought about yet another royalty payment for songwriters
and performers. This act requires that the manufacturers of digital audio
recording devices and the manufacturers of blank recording media (blank cassette
tapes, blank CDs, blank DVDs, etc.) pay a percentage of their sales price
to the Register of Copyrights to make up for loss of sales due to the possible
unauthorized copying of music.
There are two funds set up where this money is funneled. One is the Sound
Recording Fund, which receives two-thirds of the money. This money goes to
the recording artist and record company. The other fund is the Musical Works
Fund, which receives the remaining one-third of the money to split 50/50 between
the publisher and the songwriter.