In plain English

Neighboring rights (also called related rights) are a separate category of royalty paid when a sound recording is broadcast on radio, television, or played publicly. They exist in most countries outside the US (which has a limited digital-only version). Income flows from national collection societies (e.g. PPL in the UK, GVL in Germany) to both the record label and the featured artist.

Why it matters

Neighboring rights income can be substantial, especially for artists with catalogue that airs frequently internationally. Many artists do not know they are owed this income or do not have a collection society registration in place to collect it.

Where it can land

The same clause is drafted three ways. These are the positions we see, worst first, so you can tell at a glance which one is in front of you.

Read next

• Recording Royalty RateThe percentage of sales revenue paid to the artist after deductions.
• Streaming RoyaltiesHow your share of streaming revenue is calculated, typically a small fraction of what platforms pay the label.
• Accounting PeriodsHow often the label calculates and pays royalties, and how long they have after each period to actually pay.
• Audit RightsYour right to inspect the label's financial records to verify royalty calculations are correct.