Defining neighbouring rights

Neighbouring rights ensure that performers, such as musicians, actors, dancers,  and comedians, are compensated when recordings of their performances are played publicly.

Similarly, master rights owners, who are integral to creating these recordings, also benefit from these rights. Apart from production companies (e.g. record labels), independent artists who finance and produce their own recordings may be considered master rights owners.

Neighbouring rights cover both the performance and the recording itself. The term 'neighbouring' is being used due to the close association with copyright.

Who has to pay?

When recorded music is played on radio and TV stations, the broadcaster must pay a fee for this use. Similarly, when a public place plays a recording, they must also pay for it.

Who do they pay to?

Neighbouring rights societies operate under national copyright laws and regulations and are authorised to collect neighbouring rights.

Are the payments monitored?

Various technologies and methodologies are used to monitor the usage of works in different media and venues. They receive reports from broadcasters, venues, and streaming platforms to ensure accurate royalty distribution.

How do rightsholders get their royalties?

To collect their neighbouring rights, rightsholders must become members of a neighbouring rights society. By doing so, they mandate the society to license their recordings, collect royalties, and distribute payments on their behalf.