The streaming service has been forced to make a U-turn on the terms of its direct monetization program.
SoundCloud has removed a controversial ‘don’t sue’ clause from the contract of its Premier service after criticism following an investigation into its terms by The Verge.
The Verge noted last week (October 26) that the terms of SoundCloud’s new self-monetization program featured some restrictive clauses, including uncertain payment dates and changeable payout percentages as well as being asked to sign away any right to sue the company.
In a blog post published yesterday (October 29) SoundCloud made a U-turn, saying that “some language in the original program agreement was too broad, and we want to avoid any doubt around your rights and how we run the program.”
“Our team reviewed the agreement, and we’ve clarified or removed elements that may be unclear or not relevant to the open service we have now – this includes the removal of the outdated covenant not to sue language that was part of our previous invite-only agreement.”
The revised contract no longer requires artists to reach $100 in revenue to be paid out, and is now committing to a regular payment schedule every calendar month.
SoundCloud Premier – which allows artists to be paid directly for hosting their music on the service – launched in 2014, but rolled out to SoundCloud Pro and Pro Unlimited users earlier his month.