Neighboring Rights
Performance royalties paid to recording artists and record labels when their recordings are played publicly, separate from songwriter performance royalties.
Definition
Neighboring rights compensate performers and recording owners for public performance of their recordings, distinct from traditional performance royalties paid to songwriters and publishers. These rights recognize the creative contribution of recording artists.
Collection varies by country, with some territories paying neighboring rights automatically while others require registration with specific collection societies. The United States has limited neighboring rights compared to international standards.
Why It Matters
Neighboring rights represent significant unclaimed revenue for many artists, particularly those with international radio play or streaming. Proper collection can generate substantial ongoing income from past recordings.
Understanding neighboring rights territories and collection procedures helps artists and labels maximize revenue from recorded music, with some international markets providing more generous compensation than domestic performance royalties.
Examples in Practice
European radio play generates neighboring rights for both the featured artist and record label when songs receive airplay, with collection societies like PPL in the UK distributing payments based on broadcast monitoring.
Streaming platforms in neighboring rights territories pay separate royalties to recording artists beyond the standard streaming revenue, recognizing performers' rights in addition to songwriter compensation.
Sessionmusicians and background vocalists may qualify for neighboring rights payments when their performances are broadcast, providing ongoing income from recording participation beyond initial session fees.