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Module 4 · Non-Interactive Royalties · Lesson 3Neighboring Rights & Global Broadcasts
Educational information only. This lesson is not legal, tax, accounting, financial, investment, or other professional advice, and it does not create an attorney-client or any other professional relationship. Laws, rates, and organization policies change and differ by location and situation, and we do not guarantee that anything here is accurate, complete, or current, or that it will produce any result. Consult a qualified professional before acting. PMApub offers products mentioned in these lessons, and pages may display advertising. Read the full Disclaimer.
If your music is played on the radio in Germany or the United Kingdom, who gets paid? Many independent artists assume only the songwriter does. In a large number of countries, the performers and the owners of the recording are paid as well. Those payments are called neighboring rights.
This article explains what neighboring rights are, why the US situation is different, and how American artists can try to collect for plays that happen abroad. It also covers practical points about registration and data. This article is general education, not legal or financial advice, so talk with a qualified music attorney or accountant about your own situation.
What Neighboring Rights Are
Copyright law traditionally protects the composition. Neighboring rights, also called related rights, protect others who contribute to bringing a work to the public, including performers and the producers or owners of sound recordings. In music, the term usually refers to the master-side performance royalties paid when a recording is broadcast or publicly played.
In many countries, a radio station that plays a track owes money for the composition to one society and money for the recording to another. The recording money is then shared between the performers and the recording owner according to local rules. The legal form also varies: some countries grant an exclusive right, while others provide a right to fair payment, often called equitable remuneration.
How the US Is Different
In the United States, there is no general public performance right in sound recordings for over-the-air AM and FM radio. Stations pay for the composition through PROs, but not to recording owners or performers. Digital services are different, as covered earlier, because non-interactive digital radio does pay recording owners and performers through SoundExchange. Legislation to create a terrestrial right, such as the American Music Fairness Act, has been proposed, but SoundExchange states there is currently no such right, so verify the current status.
This gap has a consequence. Because US terrestrial radio does not pay the master side, American artists have often had a harder time collecting master-side money from foreign broadcasts. Rules and agreements can change over time, so treat this as background and verify current details.
Who Pays and Who Collects Abroad
Overseas, the money is collected by local collective management organizations. Well-known examples include PPL in the United Kingdom and GVL in Germany. These societies license radio stations, venues, and other public users, and then pay out to registered performers and rights owners.
SoundExchange has arrangements with a number of foreign societies and offers a service for registered US artists and rights owners who want help collecting international neighboring rights. SoundExchange states that you must be a member, complete an International Mandate, choose the territories where you want it to represent you, and submit your recordings. Which societies are covered, what fees apply, and what fees apply are decided by the organization, so read its current terms before you opt in.
A Practical Example
Maya's single becomes popular with a few radio stations in Europe. A listener in Berlin hears it on a broadcast, and a shop in London plays it as background music. Both uses are public performances of a recording.
Because those plays took place abroad, local societies may collect money for them. If Maya is registered with SoundExchange for both her featured artist and rights owner roles, and has opted into the international service, there is a pathway for that money to reach her. If she has done nothing, the societies may hold her share, or distribute it elsewhere if it remains unidentified.
Steps to Prepare Your Catalog
- Register in the US first. Sign up with SoundExchange as rights owner and featured artist.
- Check international options. Read the organization's information on opting into international collection and decide whether it suits you.
- Clean your metadata. Foreign societies match plays using details like ISRC, artist name, title, release date, and label.
- Document ownership. Keep proof of who owns the master and who performed on it.
- Track territories. Note where your music is getting airplay so you can follow up on statements.
- Review regularly. Statements from overseas can lag by a long time.
A tool like ReleaseReady can help keep ISRCs and release details consistent so that international matches are easier.
Caveats to Keep in Mind
- Not every foreign play is reported, and some uses may never produce a payment.
- Payments can arrive slowly and in small amounts.
- Local rules differ by country, including how money is split between performer and owner.
- Fees, eligibility, and terms can change.
- Opting in may affect other arrangements, such as a label or other collection agent already representing you.
Before opting in, check any existing agreements you have with a label or distributor and ask a qualified professional if needed. This article is general education, not legal or financial advice, so talk with a qualified music attorney or accountant about your own situation.
For labels, managers, and teams
International neighboring rights are a data-quality and contract-coordination job. The money is small per play and slow to arrive, so the only way to make it worthwhile across a roster is to run it as a process.
First, settle who has the mandate. If your label, distributor, or another agent already collects neighboring rights for an artist or recording, a second collector can create conflicts. Review contracts before anyone opts in, and put in writing who represents each recording, in which territories, and for how long.
Second, fix the underlying records. Foreign societies match plays using ISRC, artist name, title, label, and release date. Keep one master catalog file that all registrations are generated from, and update it whenever a recording changes ownership, label name, or credited artist.
Third, document ownership and performer credits. Societies may ask for proof of who owns the master and who performed on it, and local rules on how money is shared between performers and owners vary by country. Keep session contracts, split sheets, and master purchase agreements together.
Fourth, account carefully. Foreign statements can lag and arrive in different currencies and formats, and withholding or administrative fees may apply. Reconcile each statement to your catalog register, record the territory and period, and ask your accountant how to treat foreign income. Check which territories your collector actually covers before you assume a play was missed.
Assign a named owner for this workflow, because without one the registrations drift out of date.
Common mistakes to avoid
- Confusing neighboring rights with songwriter royalties. They belong to performers and recording owners, not to writers as writers.
- Assuming US terrestrial AM and FM radio generates recording royalties. It does not under current US law.
- Opting in without checking whether a label, distributor, or other agent already represents the recordings.
- Skipping SoundExchange registration and expecting international collection to work anyway.
- Submitting inconsistent metadata, which prevents foreign societies from matching plays.
- Assuming payment is guaranteed. It depends on actual plays, reporting, and matching.
- Not tracking where airplay is happening, which makes statements hard to check.
- Ignoring the fact that country rules for splitting money between performers and owners differ.
Action checklist
- Register with SoundExchange as rights owner and featured artist.
- Read the current terms for international collection.
- Check your existing contracts for any party that already represents your recordings abroad.
- Complete the International Mandate and choose territories if you decide to opt in.
- Submit your recordings with accurate ISRCs, titles, and artist names.
- Document ownership and performer credits for each master.
- Note where your music is getting airplay.
- Record all registrations in your catalog register.
- Reconcile foreign statements to your register when they arrive.
- Revisit the setup at least once a year.
Key terms
- Neighboring rights: rights of performers and recording owners, in many countries, to be paid when recordings are broadcast or publicly played; also called related rights.
- Related rights: another name for neighboring rights, used in many treaties and national laws.
- Equitable remuneration: a right to fair payment, rather than an exclusive right to authorize or prohibit use.
- Collective management organization: an organization that licenses users and distributes royalties to its members.
- PPL: the collective management organization for recordings in the United Kingdom.
- GVL: the German society that collects for performers and recording owners.
- International Mandate: SoundExchange's authorization form that lets it represent a member abroad in selected territories.
- Terrestrial radio: over-the-air AM or FM broadcast, as opposed to internet or satellite transmission.
- Public performance right in a sound recording: the right to be paid when a recording is played publicly; in the US it is limited to digital audio transmissions.
- ISRC: an identifier code for a specific sound recording, used to match plays.
- Rights owner: the owner of the sound recording copyright; often a label or the artist.
Key takeaways
- Neighboring rights are master-side performance royalties paid to performers and recording owners in many countries.
- US law gives sound recording owners no general performance right for terrestrial AM and FM radio, which affects how US artists collect abroad.
- Foreign societies such as PPL in the UK and GVL in Germany collect and distribute local neighboring rights money.
- SoundExchange offers a route for registered US artists to collect internationally, subject to its current terms.
- Clean metadata and clear ownership records make international matching more likely.
Test your knowledge
Five questions to check what you learned. Open each answer after you decide. The interactive course scores your answers and tracks progress.
1. In general, what are neighboring rights?
- Rights songwriters hold to be paid when their songs are performed
- Rights of performers and sound recording owners to be paid when recordings are broadcast or publicly played in many countries
- Rights to use a song in a film or advertisement
- Rights to license a song to local businesses within a city
Show answer
Answer: B. Neighboring rights are on the recording side and cover performers and owners. Songwriter performance income and sync licensing are different rights.
2. Which statement about terrestrial AM/FM radio and sound recordings under US law is accurate?
- SoundExchange collects AM/FM master royalties at statutory rates
- AM/FM stations pay for recordings but not for songs
- AM/FM stations pay recording owners only if the label is a major
- There is no general public performance right in sound recordings for over-the-air AM/FM, so stations pay for compositions but not to recording owners
Show answer
Answer: D. US law gives recording owners a performance right only for digital audio transmissions. Over-the-air stations pay for compositions through PROs.
3. Maya's single is played on German radio. What is generally needed for her to collect master-side money from it through SoundExchange?
- SoundExchange membership and an International Mandate with the territories she chooses
- Nothing, because her PRO collects it automatically
- Registration with The MLC
- A direct invoice to the radio station
Show answer
Answer: A. SoundExchange states that membership and a mandate for chosen territories are the steps. The MLC and PROs deal with compositions.
4. Nightshift Records finds its recordings played in Europe, but statements show many plays as unidentified. What is the best step?
- Delete the recordings from circulation
- Register the songs with The MLC
- Check and clean ISRCs, titles, artist names, and label data across all registrations
- Stop reporting recordings so statements are simpler
Show answer
Answer: C. Foreign societies match plays using metadata, so inconsistencies lead to unidentified plays. The MLC and deletion do not address the matching problem.
5. A friend says neighboring rights are what songwriters earn from foreign radio. What is accurate?
- No, neighboring rights are paid to performers and recording owners; songwriters' foreign income comes through composition societies or publishers
- Yes, they are the same as songwriter royalties
- They are paid to songwriters only when they also perform
- They are paid only to labels, never to artists
Show answer
Answer: A. Neighboring rights belong to the recording side, which includes performers and owners. Songwriter and publisher income is a separate stream.
Frequently asked questions
Are neighboring rights the same as songwriter royalties?
No. Songwriter royalties relate to the composition. Neighboring rights relate to the sound recording and the performers on it, so they are paid to different parties.
Do I have to be based outside the US to earn neighboring rights?
No. Your recordings can earn money abroad if they are played there, though you need a way to collect it. Registered US artists may use services such as SoundExchange's international program, subject to its terms.
Is there a guarantee that I will receive foreign money?
No. Payment depends on whether your music is actually played, whether it is reported, and whether it is matched to you. Results vary widely.
Do I still need SoundExchange registration if I want international collection?
Typically yes. SoundExchange states that membership plus an International Mandate, with territories you choose, is required. Check the current steps before you opt in.
Further reading from official sources
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Open the interactive courseBrowse all 30 lessonsEducational information only. This lesson is not legal, tax, accounting, financial, investment, or other professional advice, and it does not create an attorney-client or any other professional relationship. Laws, rates, and organization policies change and differ by location and situation, and we do not guarantee that anything here is accurate, complete, or current, or that it will produce any result. Consult a qualified professional before acting. PMApub offers products mentioned in these lessons, and pages may display advertising. Read the full Disclaimer.