What are Neighbouring Rights?
Neighbouring Rights, also known as Related Rights, are the rights granted to performers and phonogram producers (the record label that pays for the recording).
The term “Neighbouring Rights” is used to refer to income from certain uses of a recording. Indeed, each time a track is reproduced and broadcasted, Neighbouring rights income is generated and collected. The scope varies depending on the country, but generally speaking neighbouring rights income is collected for:
- Broadcasts (on the radio, television, certain forms of internet broadcast such as non-interactive streaming)
- Public performance (clubs, bars, restaurants, shops, bowling alleys, …)
- Private copying
Regarding phonograms in the public domain, they do not generate any income.
Why should I collect Neighbouring Rights?
To begin with, if you are eligible for Neighbouring Rights, you are entitled to it: you are eligible if you hold the master rights (as a master owner or license for example) which means you must be either the original sound recording rights owner, or these rights must have been granted to you by the original sound recording rights owner. This grant of rights must be explicitly mentioned in a contract.
But above all, Neighbouring Rights are an important and regular share of a label revenue: everywhere in the world, users and broadcasters are paying for the use of music. Part of this income is managed collectively, being gathered and redistributed in most countries by Collective Management Organization (CMO).
Unfortunately, due to the complexity of the data and processes involved, many record labels and rights holder do not collect their share.
How does Believe manage my Neighbouring Rights?
First this should be included in your contract or if a Neighbouring Rights mandate has been signed with us. Note that Believe exclusively manages the label share, but not the performer’s share. We are in direct contact with the main CMOs around the world, this allows us a great coverage of your rights. Believe frees you from any administrative burden by taking care of all registrations, conflict management and claiming, to make sure your income is collected at the fullest. You only need to fill out the information in your Backstage thanks to the Data Update Tool.
Bear in mind that all CMOs have their own schedule and rules, however a retroactive collection can be possible depending on the national legislation in each country. Believe will fully collect your rights wherever possible.
The management of grant applications is not part of the service offered by Believe. You will need to handle this with the relevant collecting society.
How is the money collected and distributed?
Each CMO collects the neighbouring-rights in its territory and distribute them to its members. As mentioned, they all have their own schedule and rules (frequency and number of payments for example). Once Believe gets the payment from CMOs, we redistribute them to you quarterly.