Neighbouring Rights are a specific type of royalty linked to the Master Copyright—the legal ownership of the actual sound recording. These royalties are generated whenever your recorded music is performed or played publicly, separate from the songwriting or publishing royalties.
When Neighbouring Rights Are Generated
Neighbouring Rights are earned when a track is commercially released and publicly performed. Common scenarios include:
- Radio and Television broadcasts
- Music played in public venues (clubs, pubs, restaurants, or retail stores)
- Public events and festivals
The revenue from these performances is typically split 50/50 between the Label (the master copyright owner) and the Artists/Performers featured on the track.
How Neighbouring Rights Are Collected
Collection is handled by specialised organisations. In the UK, this is PPL (Phonographic Performance Limited). They collect fees from businesses and broadcasters and distribute them to the relevant stakeholders. At Cygnus Music, we provide integrated tools for this process:
- PPL Submission: We submit your catalogue for full collection and royalty distribution.
- LMS Management: The Label Management System includes dedicated tools for Artist Registration and repertoire submission.
- Global Reach: Through PPL's reciprocal agreements with international societies (such as GVL in Germany or SENA in the Netherlands), we can help manage collections for your music worldwide.
Difference Between Neighbouring Rights and Publishing
It is vital to distinguish between the two primary copyrights in every song:
1. Master Copyright (Neighbouring Rights)
- Covers: The actual sound recording.
- Beneficiaries: Record labels and performing artists.
- Collector: PPL (UK).
2. Publishing Copyright (Performance & Mechanicals)
- Covers: The underlying composition (lyrics and melody).
- Beneficiaries: Songwriters and music publishers.
- Collector: PRS for Music and MCPS (UK).
Key Takeaways
- Neighbouring Rights are royalties for the recording, not the songwriting.
- When your music is played on the radio, you generate two distinct streams of performance income: one for the performers/labels (PPL) and one for the songwriters (PRS).
- Ensuring your metadata and artist registrations are accurate is essential to claiming your full 50% share of this revenue.