In a previous blog post we mentioned there are two copyrights. One copyright for the song and one for the recording. Performance Royalties compensate the writers of a song when that song is performed publicly. Now we are aiming to introduce you to Neighbouring Rights Royalties. Neighbouring Rights Royalties are related more to the copyright of the recording which compensates the master holder which is usually a record label and the performers on the actual recording of a song when that song is publicly performed on terrestrial broadcast or internet streaming. In Canada these royalties are collected by a company called Re:Sound and then distributed to the appropriate parties entitled to the royalty. Typically the royalties are collected through tariffs and from those tariffs 50% of the royalty goes to the owner of the recording master and 50% will go to the musicians and artists who performed on the recording. The 50% of the performers share can also be subdivided where a featured artist will get 45% of neighbouring Rights Royalty and 5% will be split by the rest of the musicians who performed on the song. Re:Sound will then distribute the royalties to MROC which then distributes the royalties to the artists. Re:Sound will also distribute Neighbouring Rights Royalties to the record labels through Connect Music who represent the labels as they are usually the owners of the recording master. If you are an independent artist then you are the master owner and entitled to the full 100% of the royalty. In the United States it is a little different. Since the US did not become a signatory of the Rome Convention (1961) they do not pay Neighbouring Rights to their citizens when songs are played on the radio but does pay them through non-interactive streaming services and satellite radio. Neighbouring Rights Royalties are collected by Sound Exchange in the US. However, if you are a Canadian musician and a recording of a song you performed on gets played on US radio, you will not receive Neighbouring Rights Royalties. The reciprocal is true as well. US artists are not compensated if their songs are performed on Canadian radio. Non interactive streaming and satellite radio This is yet another revenue stream you should be aware of and therefore it is wise to register with your territory’s Neighbouring Rights Royalty organization to make sure you are compensated. Every little bit helps. Enjoy!
Re:Sound Website:
MROC Website:
Connect Music Website:
Sound Exchange Website:
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