-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Q+h+h76UBpzI3tov/JNI3ZqwnjYP3FrAZ+1zRYD5NAM9ogte/BhFW8u7LJQxb4k+
 ZzXpcP1zk9TkU5Y5OnZyNw==

<SEC-DOCUMENT>0001181431-08-017401.txt : 20080310
<SEC-HEADER>0001181431-08-017401.hdr.sgml : 20080310
<ACCEPTANCE-DATETIME>20080310115210
ACCESSION NUMBER:		0001181431-08-017401
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080306
FILED AS OF DATE:		20080310
DATE AS OF CHANGE:		20080310

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SONIC FOUNDRY INC
		CENTRAL INDEX KEY:			0001029744
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				391783372
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		222 W. WASHINGTON AVENUE
		STREET 2:		SUITE 775
		CITY:			MADISON
		STATE:			WI
		ZIP:			53703
		BUSINESS PHONE:		6084431600

	MAIL ADDRESS:	
		STREET 1:		222 W. WASHINGTON AVENUE
		STREET 2:		SUITE 775
		CITY:			MADISON
		STATE:			WI
		ZIP:			53703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PEERCY PAUL S
		CENTRAL INDEX KEY:			0001286873
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-30407
		FILM NUMBER:		08676662

	BUSINESS ADDRESS:	
		STREET 1:		222 W. WASHINGTON AVENUE
		STREET 2:		SUITE 775
		CITY:			MADISON
		STATE:			WI
		ZIP:			53703
		BUSINESS PHONE:		6084431600
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd198840.xml
<DESCRIPTION>ANNUAL GRANT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-03-06</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001029744</issuerCik>
        <issuerName>SONIC FOUNDRY INC</issuerName>
        <issuerTradingSymbol>SOFO</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001286873</rptOwnerCik>
            <rptOwnerName>PEERCY PAUL S</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1415 ENGINEERING DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>MADISON</rptOwnerCity>
            <rptOwnerState>WI</rptOwnerState>
            <rptOwnerZipCode>53706</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>2008 Non-employee Director Stock Option Plan</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.80</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-03-06</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>20000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2009-03-06</value>
            </exerciseDate>
            <expirationDate>
                <value>2018-03-06</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>20000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>120000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Not applicable</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Paul Peercy</signatureName>
        <signatureDate>2008-03-10</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----