Recorded music contains two key rights. The composition and the sound recording (also known as a “master recording” or “master”). Royalties are earned through both the mechanical use and the public performance of each.
Neighbouring rights are royalties earned through a public performance or broadcast of the sound recording.
How are Neighbouring Rights collected?
They are currently collected globally by Collective Management Organizations (“CMOs”). Registering with CMOs can be time consuming and a difficult process.
Who is entitled to Neighbouring Rights?
You are due royalties from neighbouring rights if you are the owner of the sound recording (e.g. a record label or self-distributed artist), or if you are either the featured or non-featured artist, instrumentalist, producer or engineer.
The Neighbouring Rights royalty splits vary depending on your role and vary territory to territory, but may look similar to this:
- Label / Master Owner: 50%
- Featured Artist: 45%
- Non-featured Artist, Producer or Engineer: 5%
Are Neighbouring Rights royalties guarenteed?
Unfortunately, no. Due to the resources used to locate said royalties, the amount must reach a predetermined threshold to proceed. If the amount does not reach said threshold, your music will not qualify for further investigations/management.