Neighbouring rights: the royalties most Gulf artists never collect

•Lesson 3•Free

Every time one of your recordings is broadcast on radio, played on television or heard in a shop, a gym or a hotel abroad, money is usually set aside for the people who made it. That money does not pass through stores or distributors. It waits at collecting societies, and a large part of it is never claimed.

A third income stream, separate from the other two

Most artists know two streams: store income for the recording, which comes through the distributor, and performance royalties for the song, which come through a performing-rights organisation. Neighbouring rights, also called related rights, are a third stream. They belong to the recording, not the song, and are paid when the recording is broadcast or played in public.

The name comes from the idea that the rights of performers and recording owners sit next to the songwriter's copyright. In practice the money is collected by licensing radio stations, television channels, satellite and internet radio, and businesses that play music to customers, then shared out according to what was played.

Two shares: the performer and the recording owner

Neighbouring-rights income is usually split into two halves. One half goes to the owner of the recording, which is the label or, if you paid for the recording yourself, you. The other half goes to the performers: featured artists first, and a smaller portion to non-featured session musicians and backing vocalists.

An independent artist who owns the master and performs on it can usually claim both halves, but they are claimed separately and often through separate registrations. A label that owns the master claims the owner share, while the singer claims the performer share in their own name, whatever the label does.

Who collects it: SoundExchange, PPL and partner societies

In the United States, SoundExchange collects for digital non-interactive services such as satellite radio, internet radio and cable music channels, and pays featured artists and recording owners directly. Ordinary AM and FM radio in the United States does not pay recording owners, which surprises many artists. Registration is usually open to artists of any nationality and is usually free.

In the United Kingdom, PPL licenses broadcast and public performance of recordings and pays both performers and recording owners. PPL has agreements with partner societies in many countries, such as GVL in Germany, SENA in the Netherlands, Re:Sound in Canada and PPCA in Australia, and can usually collect your international income through them once you are a member. Performer membership is usually open to artists from outside the United Kingdom.

  • SoundExchange: United States digital radio and similar services, performer and owner shares
  • PPL: United Kingdom broadcast and public performance, plus international collection through partners
  • Partner societies: each covers its own country and exchanges data and money with the others

Why Gulf artists miss this money

Most Gulf countries do not yet have a working society that collects neighbouring rights for performers and exchanges income with the international network, so there is usually no local body to join and nobody collecting on your behalf. Many artists also assume the distributor handles it, but a distributor usually does not, unless your agreement says so in writing.

Eligibility can also vary. Whether a particular country must pay for a recording usually depends on international treaties and on where the recording was first released or who performed on it. Societies hold unclaimed money for a limited period under their own rules and then redistribute it, so delay has a real cost. Registering early, with complete data, is the only reliable protection.

How to register

You can usually register directly with SoundExchange and PPL as a performer, and as a recording owner if you own your masters. Prepare your legal name, your stage name, proof of identity, and a list of your recordings with ISRCs, release dates, release countries, the name of the recording owner and your role on each track. Many artists use a neighbouring-rights agent who registers and chases claims in exchange for a share of what is collected; that is a choice, not a requirement.

Keep the data consistent with your store metadata: the same ISRCs, the same spelling of your name, the same label name. Mismatched data is the most common reason a payment stays unclaimed.

Three practical steps

  1. Decide which recordings you own and on which you perform, and list them with ISRCs.
  2. Register directly with SoundExchange and PPL, or appoint an agent in writing.
  3. Check the societies once a year for unmatched recordings and claim them.

Questions people ask

Does my distributor collect neighbouring rights for me?
Usually not. Distributors collect store income for the recording. If a distributor offers neighbouring-rights collection, it should appear in your written agreement as a separate service.

Do streams on on-demand services count?
Usually not as neighbouring rights. On-demand streaming is licensed directly by the stores, and that income reaches you through your distributor. Broadcast, radio-style services and public venues are what the societies cover.

I only sing on tracks a label owns. Can I still register?
Usually yes. The performer share belongs to you as a performer, regardless of who owns the master. You register in your own name and list the tracks on which you performed.

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