Increase Your Label’s Earnings: Opt-In for Neighboring Rights Collection with Label Engine

Label Engine Announcements, General, News, Updates

Label Engine is excited to announce that labels can now opt-in to have Label Engine collect neighboring rights, a crucial revenue stream for sound recording copyright holders. Here’s an overview of what neighboring rights entail and how labels can opt-in for this service.

What Are Neighboring Rights?

Neighboring rights refer to the right to perform or broadcast a sound recording publicly. Unlike composition copyright royalties, which compensate songwriters and music publishers for the use of the musical composition, neighboring rights royalties are allocated to the sound recording copyright holders—specifically, record labels and performing artists. This ensures that artists who recorded the song and the associated record labels receive compensation when their sound recordings are publicly performed. This includes plays on satellite radio (such as Sirius XM), cable TV, live performances, and music played in public establishments.

In essence, there are two types of copyrights in music: the underlying musical composition, which includes the written notes and lyrics (known as a “musical work”), usually owned by the songwriter or their music publisher, and the actual sound recording, which includes the recorded sounds, the artist’s performance, and the producer’s work. The sound recording is typically owned by the record label or the performing artists.

Why Should Labels Collect Neighboring Rights?

Neighboring rights contribute significantly to the revenue of sound recording copyright holders. Collecting these royalties ensures they receive compensation whenever their music is publicly played, such as:

  • Digital radio broadcasts on platforms like Pandora and SiriusXM
  • Plays on satellite radio, like SiriusXM
  • Cable TV broadcasts and programming
  • Webcast streams on various online platforms
  • Music played in public venues such as restaurants, bars, and stores

Key Players in Neighboring Rights Collection

Label Engine has partnered with the leading organizations, SoundExchange for USA collection and LimeBlue for Ex-US collection, to simplify the neighboring rights collection process:

  • SoundExchange: A non-profit organization authorized by the U.S. Library of Congress to collect and distribute digital performance royalties for sound recordings. SoundExchange represents recording artists, master rights owners, and independent artists, collecting royalties from non-interactive webcasters, cable TV, and satellite radio services.
  • LimeBlue: Specializing in comprehensive neighboring rights services, LimeBlue is particularly beneficial for distribution companies outside the USA. By partnering with LimeBlue, rights holders can ensure efficient registration and collection of royalties from international public performances and broadcasts.

Please note that SoundExchange and LimeBlue are different from performing rights organizations (PROs) such as BMI, ASCAP, and SESAC. PROs collect royalties for songwriters and publishers when music is publicly performed, whereas SoundExchange focuses on collecting and distributing digital performance royalties for sound recordings, and LimeBlue specializes in neighboring rights services for international public performances and broadcasts.

How to Opt-In for Neighboring Rights Collection

Labels can easily opt-in to collect neighboring rights through Label Engine by contacting support@label-engine.com and providing the necessary rights information. Label Engine’s support team will activate the neighboring right feeds for you so that all of your releases will be delivered as well as deliver any back catalog releases.