What are Neighboring Rights, and Why Should Rights Owners care?
Neighboring rights are a form of copyright linked to commercially released recordings. When a record is played on radio, TV or performed in public (for instance in bars, restaurants and shops) a royalty, or remuneration as it is called in the neighboring rights world, is due both to the owner of the master recording (typically a record label) and the performing artist. Performing artists includes singers, instrumentalists and, if they play on the track, studio producers.
When digital radio stations play music, income is generated for artists and labels.
The legal background of these rights originates from the Rome Convention which was the first legislation to deal with neighboring rights. It was signed in 1961 and has been implemented at different times in different countries. There is also the 1996 WIPO Performance And Phonograms Treaty (WPPT), which deals with digital transmission.
There is an important distinction between the two, because although the United States never signed the Rome Convention, it did sign the WPPT. This means that there is no neighboring rights income generated in the US when music is played in restaurants, bars, and shops. However, when digital radio stations such as Pandora and SiriusXM play music, income is generated for artists and labels.
Advanced Metadata Standardization Tools
InnerCat Music Group has developed advanced metadata standardization tools in order to facilitate and maximize the collection of neighboring rights for, both, performers and labels. We combine innovative technology and our direct partnerships with specific collection societies to ensure no royalties remain uncollected.
InnerCat Music Group has developed a fully integrated management system that facilitates the fast identification of mandates, lineups, licensing periods and defective playlist records. Through the use of semantics micro services, we are able to audit and match performers and/or labels repertoires at lightning speeds.