Is SoundExchange allowed to be in the lobbying business?
So why are they now in the lobbying business? Who is paying for this lobbying? Apparently it is coming out of the royalties they're collecting from satellite and net radio broadcasters.
Maybe we should ask the Copyright Office to investigate this possible misuse of funds?
posted by Rusty Hodge at
Monday, June 18, 2007
4 Comments:
Well the first amendment of the United States Constitution gives them, and you, the right to petition the Government for a redress of grievances.
So yes they are allowed.
Actually, check their own FAQ: they're a 501(c)(6) tax-exempt organization - which, by definition, says they can "engage in limited political activities that inform, educate, and promote their given interest. *** They may not engage in direct expenditures advocating a vote for a political candidate or cause. *** "
Sounds like a pretty ripe grey area worth looking into to me.
Taking a look at the IRS's 501(c)(6 definitions ... it's chock full of examples of valid - and invalid - 501(c)(6) examples. Even a cursory glance sets off some alarm bells with respect to SoundExchange.
Case in point, from their do's-and-don'ts: "an ... organization that conducts research in projects of common interest to its industry and makes the results available only to its members rather than to the industry as a whole does *not* qualify for exemption under IRC 501(c)(6)."
I would argue that SE's Reports of Use collection and analysis constitutes 'available only to its members' ...
Here's the IRS's rules governing what 501(c)(6)'s can and can't do politically, if anybody would like to give it a once over ...
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