Make your audible contributions work for you
What are Neighboring Rights Royalties?
You’re a performer if you’ve made an audible contribution to a recording as an artist, musician, producer, engineer or any other maker of sound.
Neighboring Rights (NR) = public performance rights associated with a sound recording. So when a sound recording is broadcast / played in public (only digital broadcast in the US), NR royalties are due to any performer who has made an audible contribution to the recording. For long term protection of your neighboring rights, and to ensure your heirs benefit from these rights, you must specifically mention NR in your Will. We have a Codicil template that can be used for this purpose!
Neighboring Rights royalties are collected by CMOs (Collective Management Organizations) and there are over 100 of them worldwide. US-based SoundExchange (SX) is the world’s largest CMO and collects digital broadcast royalties in the US. UK-based PPL is the second largest CMO in the world and collects NR royalties both in the UK and globally. AYO works with both of them (and many more) to claim performer shares as an agent on your behalf. If you own the recording we can also administer that share as well. It’s important to note that in all countries other than the US, the owner must register the recording and release before the performer can claim their performance.
It’s difficult to claim your performer share if there is no proof/documentation! That’s why it’s very important that you document and get credit for your involvement;
– Make sure to get SoundExchange Letters of Direction (“LODs”) and PPL’s “Eligible studio form” signed for all recordings where you’re a producer.
– Make sure that your name is listed in liner notes, label copy and everywhere else including on Discogs. Please note that you must be credited for each title and not only for the album as a whole.
– If you’re a producer, make sure you are also credited with an instrument on the album’s liner notes/credits (e.g “Piano”, “Keyboard”).
Your performer share can only be claimed if the rightsholder share is first registered. Practically this means that the releasing label must register their share first, then your share can be claimed.
If a recording was recorded and/or released outside the US first it qualifies for collection from a larger number of international sources (provided it is registered with relevant CMOs). This is because the US doesn’t fully recognize neighboring rights – only “digital performance” which really means Sirius XM and Pandora. So whenever possible, have all or a substantial portion of your work recorded outside of the US!
Let AYO’s team of experts guide you through registering and collecting all of your neighboring rights royalties. Contact us to learn more.
