What Are Neighboring Rights? A guide to foreign music royalties

What Are Neighboring Rights? Navigating the royalties you are owed as an independent artist and songwriter can be confusing.

by Horus Music

What are neighboring rights? 

Put simply, neighboring rights are essentially royalties owed to the master copyright holder when their song is played in a different territory. The term ‘master copyright’ refers to the recording of the song. This is usually owned by the individual or company who financed the recording. Neighbouring Rights are an essential revenue stream for artists and could help to significantly increase your music income outside of your home territory. It’s important to note that these rights are not a type of royalty collected by a music publisher. They are a separate type of royalty which the master copyright holder is entitled to.

How are they generated?

Neighboring Rights are generated every time your music is played in a different territory. This can include your music being played on the radio, TV or a performance in public.

Who is entitled to Neighbouring Rights? 

The royalties produced by these rights are owed to the owner of the master copyright. Any artists or performers who have contributed to the track are also entitled to a share. This is usually set on in advance by utilising what is called a split sheet. A split sheet is an agreement or contract between anyone who has contributed to a song. The split sheet will detail each person’s percentage ownership of the song.

How can I collect my Neighbouring Rights? 

In order to receive these royalties, it is important that you have registered with a collection society such as PPL for UK artists. For artists based in the US, the recommended society is SoundExchange.  A music publisher does not collect and pay neighboring rights. This means you will be required to register yourself as a recording artist or rightsholder with a PRO and then upload your work. It is necessary to complete this step accurately as the inputted metadata will ensure that any money your song makes will get paid back to you.