Reader answer checklist
This guide is structured to answer the practical questions a reader should resolve before relying on the topic.
- Direct answer
- Neighboring or related rights can generate sound-recording performance income in many territories, while United States terrestrial AM/FM radio generally does not pay a comparable master performance royalty.
- Who this is for
- Recording artists, master owners, managers, and producers tracking digital and international sound-recording performance income.
- Practical example
- A recording may earn composition performance royalties from U.S. broadcast while its master earns digital non-interactive royalties through SoundExchange and potentially related-rights income abroad.
- Limits and exceptions
- Rights, reciprocity, collection mandates, territories, service types, and local law vary; international claims should not be inferred from U.S. rules.
- What to do next
- Identify the master owner and performers, register with the relevant organizations, and verify each territory and service before making a claim.
Evidence records
verified- United States Code, Title 17 — Copyrights — U.S. Copyright Office · Title 17, Chapter 1
Source records identify the evidence to review; they do not replace a claim-by-claim legal review. See the source index for the audit trail.
Editorial record
verified- Last edited
- 2026-07-17
- Reviewed
- 2026-08-07
- Reviewer
- Michael Ruiz
Reviewed by Michael Ruiz on 2026-08-07. Recheck date-sensitive rules and contract terms for a specific matter. See the editorial policy for the review process.
Sound Recording Performance Rights
While performance royalties for compositions are paid globally, performance royalties for Sound Recordings (Masters) are called Neighboring Rights internationally because they "neighbor" the author's copyright.
The United States AM/FM Radio Gap
Unlike almost every other developed nation, the United States does not recognize a public performance right for sound recordings on analog terrestrial broadcast media. Under 17 U.S.C. § 114, terrestrial AM/FM radio stations pay zero performance royalties to recording artists or record labels; they only pay performance royalties to songwriters and music publishers.
The Digital Solution: SoundExchange
In 1995, Congress passed the Digital Performance Right in Sound Recordings Act, creating a digital public performance right. Under 17 U.S.C. § 114(d)(1), digital, non-interactive services (satellite radio like SiriusXM, digital cable TV, webcasters like Pandora) must pay sound recording performance royalties. These are collected and distributed by SoundExchange.
SoundExchange Payout Structure
SoundExchange distributions are set by a statutory split: - 50% to the Sound Recording copyright owner (the record label). - 45% directly to the Featured Artist. - 5% to a non-featured artist royalty fund (session musicians and backing vocalists, administered by SAG-AFTRA & AFM).