Neighboring Rights for Performers

Neighboring rights are a critical but often misunderstood revenue stream for musicians and recording artists. Unlike traditional songwriting royalties, which compensate composers and publishers, neighboring rights ensure that the performers and record labels who created the actual sound recording receive compensation when their work is played on radio, broadcast, or certain digital platforms.

What Are Neighboring Rights?

Neighboring rights derive their name from European copyright law, where they're called "related rights" because they relate to, or neighbor, the primary copyright in a musical composition. When you hear a song on the radio or streaming platform, two copyrights are technically at play: the composition itself (controlled by the songwriter and publisher) and the sound recording (controlled by the artist and record label). Neighboring rights specifically protect the sound recording copyright holders.

In many countries, including most of Europe, Canada, and Japan, broadcasters and digital services must pay performers and record labels when their recordings are used publicly. The United States historically lagged behind, but the Orrin Hatch Copyright Term Extension Act expanded neighboring rights protections for U.S. performers, creating significant new revenue opportunities.

Who Collects and Distributes Neighboring Rights?

Neighboring rights are typically collected and distributed by specialized organizations in each country. In the United States, SoundExchange is the primary collection society, operating under a statutory licensing mandate. SoundExchange collects performance royalties from satellite radio, internet radio, cable TV music services, and other digital audio transmissions.

Other countries have their own organizations: the PPL (Phonographic Performance Ltd.) in the UK, SCPP in France, and similar entities elsewhere. These organizations negotiate licensing agreements with broadcasters and streaming services, collect fees, and distribute them to eligible rights holders.

How to Register and Claim Your Rights

To receive neighboring rights payments in the United States, you must register with SoundExchange. The process is straightforward but requires accurate information about your recordings. Here's how to get started:

First, visit the SoundExchange website and create an account. You'll need to verify your identity and provide information about the sound recordings you control. This includes album titles, release dates, and your role as either a performer or sound recording copyright owner.

For each recording, you must register the performers and the label. If you're an independent artist, you likely own both your sound recording and have performer credits. Make sure your name and the recording details match exactly how they appear on metadata in streaming platforms and broadcast systems. Mismatches are a common reason for missed payments.

Once registered, SoundExchange tracks when your recordings are played on eligible platforms and accumulates royalties. Payments are typically distributed quarterly, though there are minimum thresholds you must reach before funds are released.

Maximizing Your Neighboring Rights Income

To ensure you capture all available neighboring rights revenue, maintain clean metadata across all platforms. When uploading music to distributors like DistroKid, TuneCore, or CD Baby, provide complete performer and recording information. This metadata flows to SoundExchange and other collection societies, allowing them to properly identify your work.

If you're a member of a band, clarify which members are official performers on each recording. Secondary performers and session musicians may also be eligible to register and claim their own neighboring rights share, though this depends on your recording agreements and local regulations.

Register all versions of your recordings—remixes, alternate mixes, and live versions all generate separate neighboring rights payments. A full-length album might include 10 separate registrable sound recordings, each generating its own revenue stream.

Understanding Payment Structures

SoundExchange distributes payments based on detailed tracking data from radio stations and digital services. However, the allocation is not always transparent, and disputed claims are common. The organization maintains detailed logs, but artists typically receive information showing total payments rather than track-by-track breakdowns.

International neighboring rights can be even more lucrative than domestic U.S. collections, as some countries have significantly higher statutory rates. If your music is popular in territories like Germany, France, or the UK, you may be entitled to substantial international neighboring rights payments through local collection societies.

The Bottom Line

Neighboring rights represent real money for performers and record labels. While individual payments might seem modest, they accumulate significantly for artists with substantial airplay. By registering with SoundExchange and maintaining accurate metadata, you ensure that you receive compensation rightfully owed to you. Don't leave this revenue on the table—claim your neighboring rights today.