Traxsource has announced a scheme to pay back any withheld or missing royalty payments from across its history.
The new system was announced during the ADE Transparency Panel in Amsterdam. Traxsource will return money to labels that may have been withheld over the retailer's 11-year history because of complicated licensing schemes. The digital store explains that due to constantly-changing agreements and confusion around digital download royalties, sometimes Traxsource would have to pay the estimated royalty fees into escrow instead of to the label (or artists, publishers and copyright societies) while the exact amounts were figured out.
"After years of negotiating licenses in a constantly evolving copyright licensing landscape," the retailer said in a statement, "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."
Traxsource is a major digital retailer for dance music, founded in 2004 by Marc Pomeroy and Brian Tappert.