Neighboring Rights for Performers

Neighboring rights—also called related rights—are rights connected to a recorded performance. They are separate from the copyright in the underlying song. In practical terms, one recording can involve money owed to the people who wrote the musical work, the people who performed on the recording, and the person or company that owns or produced the sound recording. Which uses generate payment, who collects it, and how money is divided depend on the country, the service, the recording, and the relevant contracts.

This article focuses primarily on the United States, with a comparison to the United Kingdom. These systems should not be treated as a universal international template. Rights are territorial and time-sensitive, and different countries may use different collection organizations, exemptions, eligibility rules, and payment structures.

The two rights layers in a recorded song

Start by separating the song from the recording.

The musical work is the composition: the melody, lyrics, harmony, and other creative material that make up the song. Its copyright generally belongs initially to the songwriter or songwriters, subject to transfers, publishing agreements, and other contracts. Payments connected to the musical work may flow through publishers, performing-rights organizations, mechanical-rights systems, or direct licenses, depending on the use and territory.

The sound recording is the particular recorded performance: the fixed series of sounds captured in a master recording. The U.S. Copyright Office distinguishes a sound recording from a phonorecord. A sound recording is the recorded sounds themselves, while a phonorecord is a material object in which those sounds are fixed, such as a record, tape, or other storage medium. The sound-recording copyright can also cover certain digital-audio performances of the recording. See Sound Recordings from the U.S. Copyright Office.

That distinction matters because using a recording can implicate both layers. A service playing a recording may need rights in the musical work and rights connected to the sound recording. Paying the songwriter does not automatically pay the featured performer, session musicians, or sound-recording owner. Conversely, a sound-recording payment does not replace the separate permissions or royalties associated with the composition.

Internationally, the term “neighboring rights” commonly refers to rights for performers, phonogram producers, and broadcasting organizations that exist independently of authors’ and publishers’ rights. The exact beneficiaries and terminology vary by national law. The World Intellectual Property Organization explains these separate rights and the way public-performance exploitation can involve authors, performers, and producers in different roles. See Intellectual Property and Music.

Who may receive recording-related royalties?

The first group is featured performers. This usually means the artist or artists identified as the principal performers on the recording. In the United States, featured artists can receive a statutory share of certain eligible digital performance royalties.

The second group is nonfeatured performers. These may include musicians and vocalists who performed on the recording but are not presented as the featured artist. Their entitlement can be handled through statutory rules, collective-management systems, performer agreements, or other arrangements depending on the territory and use. The fact that someone played or sang on a track does not, by itself, establish every payment right in every country.

The third group is the sound-recording copyright owner. This may be a record label, artist, producer, or another person or company, depending on the ownership chain and contracts. Ownership of the master and status as a performer are separate questions. One person may be both a performer and a sound-recording owner, while another performer may have rights only as a featured or nonfeatured participant.

Producers, mixers, and engineers require special care in the U.S. statutory system. SoundExchange generally pays featured artists and sound-recording copyright owners. A producer, mixer, or engineer may receive a directed share only when the featured artist provides an appropriate Letter of Direction. A Letter of Direction does not automatically make that person a copyright owner or featured artist; it directs payment according to the applicable arrangement. SoundExchange discusses this issue in Frequently Asked Questions.

The contract and the recording credits therefore matter. A credit may help establish what a person did, but it does not answer every question about ownership, eligibility, payment direction, or territorial collection. For a real dispute, the applicable agreements and law would need to be reviewed by an appropriate professional. This article is educational content, not individualized legal, financial, tax, contract, or royalty advice.

What SoundExchange covers in the United States

SoundExchange is a U.S. collection organization for certain digital performance royalties associated with sound recordings. Its role is narrower than “all streaming” or “all radio.” In the United States, its statutory-license work primarily concerns eligible noninteractive digital audio transmissions.

A noninteractive service lets a listener hear programming without choosing an exact recording on demand. Examples can include certain internet radio-style services, programmed digital channels, and other services that satisfy the statutory requirements. The listener may have some control over the channel or skips, but the key legal question is whether the service qualifies for the applicable statutory license—not simply whether it operates online.

Sections 112 and 114 of the U.S. Copyright Act provide statutory licensing mechanisms for certain digital audio transmissions and related ephemeral copies. Section 114 addresses the public performance of sound recordings by means of digital audio transmission, while section 112 addresses certain temporary copies made to facilitate transmissions. The Copyright Office notes that these provisions operate within a statutory and Copyright Royalty Board rate-setting framework. See Section 112 and 114 - Notice of Use of Sound Recordings.

The statutory license has limits. Interactive or on-demand access falls outside the statutory license and generally requires direct licensing. A service that allows a user to select and receive a particular recording on demand cannot simply assume that SoundExchange’s statutory system covers the use. SoundExchange describes these distinctions in Licensing 101.

Traditional over-the-air radio is another important limit. SoundExchange states that it does not distribute royalties for traditional U.S. over-the-air broadcasts because the United States does not currently provide a general sound-recording performance right for that type of broadcast in the same way it does for covered digital transmissions. That does not mean radio uses are legally identical everywhere, nor does it eliminate other rights connected to the musical work. It means that readers should identify the territory and service type before assuming that a recording royalty is due through SoundExchange.

The historical explanation also matters. Do not attribute expanded U.S. neighboring-rights protection to the Orrin Hatch Copyright Term Extension Act. The relevant U.S. digital sound-recording performance right rests on the statutory framework established by the Digital Performance Right in Sound Recordings Act of 1995 and later amendments where relevant, including the current operation of sections 112 and 114. This article relies on the current statutory and administrative framework rather than an inaccurate historical shortcut.

The U.S. statutory allocation

For receipts collected under the specified U.S. section 114 statutory license, 17 U.S.C. § 114(g)(2) provides this allocation before permitted deductions and subject to statutory exceptions:

• 50% to the sound-recording copyright owner.
• 45% to featured artists.
• 2.5% to nonfeatured musicians.
• 2.5% to nonfeatured vocalists.

The statutory text defines the relevant participants and transmission concepts. See Chapter 1 - Circular 92: Section 114.

These percentages are not a universal neighboring-rights split. They apply to the specified U.S. statutory-license receipts. They are also not a guarantee of a particular net payment to an individual. Deductions, statutory exceptions, ownership questions, performer status, contracts, repertoire identification, and reporting can affect what reaches a claimant.

A simple example illustrates the structure. Suppose an eligible statutory service generates $1,000 in receipts attributable to a set of recordings, and suppose—only for illustration—that the relevant statutory allocation is applied before permitted deductions. The sound-recording copyright-owner share would be $500, the featured-artist share would be $450, the nonfeatured-musician share would be $25, and the nonfeatured-vocalist share would be $25. This example explains the statutory percentages; it does not predict a person’s actual payment or establish that every $1,000 pool will be divided this way.

Registration, claims, and metadata

Registration is a practical step in the U.S. system. SoundExchange states that recording artists and sound-recording owners must register to claim and receive domestic U.S. statutory royalties. Registered creators can search, claim, and manage recordings through SoundExchange Direct. See Artists, Labels & Producers and Frequently Asked Questions.

Registration does not itself establish ownership. A claimant still needs the relevant performer or sound-recording-owner status, and any claim may be affected by contracts, conflicting claims, or incomplete information. Registration is best understood as putting the right account and repertoire information in the collection system, not as creating a right that did not otherwise exist.

Recording identification is equally important. The International Standard Recording Code, or ISRC, is a useful identifier for a particular recording. SoundExchange provides ISRC search and repertoire-matching tools, while licensees submit reports identifying recordings and usage information. Accurate titles, artist names, versions, ISRCs, ownership information, and performer credits can improve matching. See Licensing 101 and Artists, Labels & Producers.

Metadata matching improves identification but cannot guarantee payment. A recording may remain unpaid or disputed if ownership information is incomplete, reports are missing, the recording is not claimed, or multiple parties assert conflicting rights. Keep a version-controlled recording catalog and preserve the documents that support ownership, performer participation, and any payment direction.

Do not assume that one registration process, payment threshold, metadata standard, or payment schedule applies worldwide. SoundExchange’s registration and ISRC workflows are U.S.-specific examples. Payment timing is organization- and account-dependent; readers should consult the relevant society’s current payment policy rather than rely on a universal cadence.

The United Kingdom comparison

The United Kingdom recognizes performers’ rights separately from authors’ rights. UK government guidance describes payment-related rights when recorded performances are used publicly or in broadcasts, with collective-management organizations commonly administering those payments. The treatment of nonfeatured performers and the effect of assignments or contracts can affect entitlement. See Performers’ rights.

PPL is a UK example of a collecting organization handling recording-related rights. PPL identifies collection for recording rightsholders and performers in uses including public performance, broadcast, copying for those purposes, and certain online uses. Its mandate and repertoire rules are territorial and membership-based. See The rights PPL manages.

The comparison shows why a global statement such as “all broadcasters and digital services pay performers and labels” is too broad. The U.S. SoundExchange system, the UK PPL system, and other national systems may differ in the rights recognized, services covered, exemptions, collection organizations, and allocation rules. A performer working internationally may need to identify the relevant organization in each territory and confirm whether a reciprocal or direct-registration route exists.

A practical route for performers

First, list the recordings on which you performed and identify whether you are featured, nonfeatured, or both across different releases. Second, identify the sound-recording owner for each recording and preserve agreements, credits, and any amendments. Third, collect reliable recording identifiers and metadata, including the ISRC where available. Fourth, for U.S. eligible noninteractive digital uses, register with SoundExchange, search its repertoire, and claim recordings that match your participation or ownership. Fifth, resolve conflicts carefully and use a Letter of Direction when a producer, mixer, or engineer is intended to receive a directed share from a featured artist. Finally, for UK or other territories, locate the applicable collecting organization and verify its current rules, repertoire requirements, and payment procedures.

The central lesson is simple: a song and a recording are not the same right, and “streaming” or “radio” is not a complete legal description. Identify the territory, identify the service, identify your role, and match the recording data before assuming who should be paid. That disciplined route gives performers a clearer way to find recording-related royalties while respecting the limits of each legal and collection system.