What Are Neighboring Rights?
Neighboring rights refer to the right to perform or broadcast a sound recording publicly. Unlike composition copyright royalties, which compensate songwriters and music publishers for the use of the musical composition, neighboring rights royalties are allocated to the sound recording copyright holders—specifically, record labels and performing artists. This ensures that artists who recorded the song and the associated record labels receive compensation when their sound recordings are publicly performed. This includes plays on satellite radio (such as Sirius XM), cable TV, live performances, and music played in public establishments.
In essence, there are two types of copyrights in music: the underlying musical composition, which includes the written notes and lyrics (known as a “musical work”), usually owned by the songwriter or their music publisher, and the actual sound recording, which includes the recorded sounds, the artist’s performance, and the producer’s work. The sound recording is typically owned by the record label or the performing artists.
Why Should Labels Collect Neighboring Rights?
Neighboring rights contribute significantly to the revenue of sound recording copyright holders. Collecting these royalties ensures they receive compensation whenever their music is publicly played, such as:
Digital radio broadcasts on platforms like Pandora and SiriusXM
Plays on satellite radio, like SiriusXM
Cable TV broadcasts and programming
Webcast streams on various online platforms
Music played in public venues such as restaurants, bars, and stores
How to Opt-In for Neighboring Rights Collection
Labels can easily opt-in to collect neighboring rights through Label Engine by contacting support@label-engine.com and providing the necessary rights information. Label Engine’s support team will activate the neighboring right feeds for you so that all of your releases will be delivered as well as deliver any back catalog releases.
Accounting Tutorial
Add a new statement category for neighboring rights on https://label-engine.com/statement_categories.php
Input your new statement category name and click “Add Statement Category”. Once it has been added, you have the ability to edit or delete the category.
View your neighboring rights statement on https://label-engine.com/statements.php and select the neighboring rights statement category. You can also upload your neighboring rights statement manually. Allocate 100% of royalties to the label.
Add a statement category to existing statements on https://label-engine.com/edit_statement.php?statement_id=######
Use filters to view all statements from SoundExchange or Lime Blue and add the neighboring rights category.