Similar to composition royalties – ie. the royalties paid to publishers and songwriters – Neighboring Rights royalties are paid to master recording owners (e.g. record labels), performers (e.g. artists, featured artists and musicians) and contributors (e.g. producers) resulting from the performance of sound recordings also known as “master recordings” or “masters”.
In other words, if you:
Have conducted an orchestra on a sound recording, or;
Have produced a sound recording, or;
Own sound recordings
You may be entitled to Neighboring Rights royalties resulting from the sound recording being broadcast on TV, radio, in the cinema or in a public space or business.
These royalties are called Neighboring Rights because they ‘neighbor’ the composition copyright.
While Performance Rights Organizations (“PROs”) collect and pay performance royalties to publishers and songwriters, Neighboring Rights societies often known as Collective Management Organizations (“CMOs”) collect and pay performance royalties to record labels, artists and contributors to the recordings..