They claim the rights on spoken word as well, though it's under their "members" listing, they do not clarify if that is excluded from the non-members royalty collection, but some articles are claiming they are/will demand such royalties even for that.

They claim that they get to mandate collection for non-members as well as
members, because if those non-members approach them for royalty payment, they
will pay them (after the applicant fills out forms proving their rights to those performances that were streamed and their right to receive the royalties, and pays deducted fees of course). So this means playing indie labels will NOT exclude us from having to pay all the royalties for streaming. So they get to charge webcasters for all musical (and spoken ???) broadcast non-interactive (that means streaming, not download/podcast) streamed over the Internet!

I've been seeing articles pointing this out since around the end of April,
that they are starting to act on this premise.

I don't know if this would hold up in a court battle, but it will years before
that would be resolved.
<sigh>
Well, I have lots of convo points for tonight's show to be sure.
SoundExchange FAQs below.

http://soundexchange.com/faq.html

##### BEGIN SOUND EXCHANGE FAQ QUOTES ######

What about webcasting?

 The recent U.S. Copyright Office ruling regarding webcasting designated
SoundExchange to collect and distribute to all nonmembers as well as its
members. The Librarian of Congress issued his decision with rates and terms
to govern the compulsory license for webcasters (Internet-only radio) and
simulcastors (retransmissions). For more detailed information on the
different types of statutory licensees, including webcasters, click here. For
questions relating to licensing, click here for Licensing 101.

What licenses does SoundExchange administer?

The Digital Performance Right in Sound Recordings Act of 1995 (DPRA) and the
Digital Millennium Copyright Act of 1998 (DMCA) granted a performance right
in sound recordings for certain digital and satellite transmissions. In
exchange for this new right, SRCOs are subject to a compulsory license for
the use of their music, provided the user complies with those conditions set
forth in the copyright law. SoundExchange was established to administer the
collection and distribution of royalties from such compulsory licenses taken
by noninteractive streaming services that use satellite, cable or Internet
methods of distribution.
http://soundexchange.com/faq.html#a6


What royalties does SoundExchange administer?

SoundExchange collects and distributes royalties from statutory licenses,
including:
* Digital cable and satellite television services (Music Choice and Muzak)
* Noninteractive "webcasters" (including original programmers and
retransmissions of FCC-licensed radio stations by aggregators)
* Satellite radio services (XM and SIRIUS)


What is a featured artist?
 A "featured artist,” “featured recording artist,” “contract artist,” “royalty
artist,” or “featured performer” means the performing group or, if not a
group or ensemble, the individual performer, identified most prominently in
print on, or otherwise in connection with, the phonorecord actually being
performed. If a sound recording (either musical or spoken word) identifies
several featured performers, then the allocation of royalties may be on a pro
rata basis among all identified performers. According to the legislative
history to the Digital Performance Right in Sound Recordings Act, where “both
the vocalist or soloist and the group or ensemble are identified as a single
entity and with equal prominence (such as ‘Diana Ross and the Supremes’),
both the individual and the group qualify as the ‘featured recording
artist.’” SoundExchange may also distribute royalties according to any splits
agreed to among featured recording artists in private agreements, provided
that all of the identified featured recording artists agree in writing to
SoundExchange’s distribution of royalties according to such splits.


Are artists receiving direct payments from SoundExchange?

 Yes. SoundExchange, in compliance with the rules and regulations of the U.S.
Copyright Office, provides direct payment to all artists. We are providing
direct payment to the major label groups and hundreds of independent labels
without recoupment. We are, therefore, processing thousands of artist
accounts in addition to the hundreds of SRCO accounts. All SoundExchange
royalty distributions include payment of the 5% share for nonfeatured
musicians and vocalists to AFTRA and AFM's Intellectual Property Rights
Distribution Fund, that collects and distributes this money on their behalf.
If you are a nonfeatured musician or a nonfeatured vocalist, and would like
to inquire about any royalties that may be due you, please contact the AFM
and AFTRA Intellectual Property Rights Distribution Fund at
www.raroyalties.org.

##### END SOUND EXCHANGE FAQ QUOTES #####

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