What Are Neighboring Rights Royalties in Music?

Royalties don’t just come from streams and downloads. Neighboring rights are a vital—yet often overlooked—source of income for artists and labels when recordings are broadcast or played in public. Understanding how they work is key to claiming what you’re owed.

What Are Neighboring Rights?

Neighboring rights refer to the royalties earned from the public performance or broadcast of a sound recording. Unlike publishing rights, which compensate songwriters and publishers, neighboring rights reward the people and entities involved in the recorded performance—typically the performing artist and the recording’s rights holder (often a label or the artist themselves).

They’re called “neighboring” because they exist alongside copyright in the musical composition. In some countries and legal frameworks, they’re also referred to as “related rights.”

Neighboring rights are distinct from composition rights and specifically concern the use of the sound recording, not the underlying song.

Who Is Entitled to Neighboring Rights?

Neighboring rights royalties are typically split between:

• Performers: musicians, vocalists, background singers
• Master rights holders: usually record labels or independent artists who own their masters

In many countries, these royalties are further divided between featured performers (lead artists) and non-featured performers (session musicians, background singers), with non-featured performers often compensated via specialized societies or secondary rights funds (e.g., ADAMI in France, AIE in Spain).

In some jurisdictions, studio producers may also be eligible for a share of neighboring rights via equitable remuneration or contractual arrangements.

These rights exist in many—but not all—countries. For example, the U.S. does not pay neighboring rights for terrestrial radio plays, unlike most of Europe.

How to Collect Neighboring Rights

Collection is handled by local collective management organizations (CMOs)—societies responsible for tracking usage, collecting royalties, and distributing payments. Artists and rights holders must register their works, including metadata such as ISRC codes to ensure proper tracking and payment.

To collect neighboring rights internationally, artists often need to register with multiple CMOs or work with an international rights administrator that maintains reciprocal agreements. Without proper international representation, royalties may go uncollected abroad.

Why Neighboring Rights Matter

For many artists—especially those with significant radio play or international reach—neighboring rights are a valuable source of income. According to IFPI, the sector generated over $2 billion globally in recent years. However, many rights go uncollected due to lack of registration, poor metadata, or lack of representation in foreign markets.

In many countries, neighboring rights royalties fall under “equitable remuneration” provisions—meaning that they are non-waivable and must be paid by broadcasters and public venues to performers and rights holders. This legal framework helps protect artists' income regardless of contract terms.

Understanding and managing neighboring rights is essential for maximizing royalties beyond streaming and downloads.

Want to know where songs are getting played on radio around the world? Soundcharts helps artists, managers, and labels track global airplay in real time—making it easier to support neighboring rights claims and uncover uncollected royalties.

What’s the Situation in the U.S.?

The U.S. only recognizes neighboring rights in the context of digital non-interactive streaming—meaning platforms like SiriusXM and Pandora generate royalties, but traditional AM/FM radio and many public venues do not. This differs from most countries, where both digital and terrestrial uses are covered.

As a result, U.S.-based artists often miss out on royalties collected internationally unless they work with a rights management agency that has reciprocal agreements with foreign societies. Even when their recordings are broadcast abroad, some countries withhold payments to U.S. performers due to a lack of reciprocal rights under international agreements.

Legislative efforts like the American Music Fairness Act aim to change this by establishing neighboring rights for terrestrial radio in the U.S., but such proposals remain pending as of 2025.