Reader answer checklist
This guide is structured to answer the practical questions a reader should resolve before relying on the topic.
- Direct answer
- Section 114 limits the U.S. public performance right in sound recordings and generally excludes traditional terrestrial AM/FM broadcasts while regulating certain digital transmissions.
- Who this is for
- Recording artists, labels, managers, and researchers separating master performance income from composition performance income.
- Practical example
- Compare an AM/FM broadcast, an interactive stream, and a non-interactive webcast to see why each may involve different rights and collection paths.
- Limits and exceptions
- The rule has statutory conditions, service qualifications, international differences, and exceptions; it does not eliminate composition royalties.
- What to do next
- Classify the service and territory, identify the master and composition rights, and confirm the current rule with the relevant collection organization.
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.
17 U.S.C. § 114: The Terrestrial Radio Exemption
Under Section 114, the scope of public performance rights in Sound Recordings is strictly limited compared to standard composition copyrights.
Terrestrial AM/FM Exemption
Section 114(a) explicitly states that the public performance right in a sound recording does not include any right of public performance on analog, terrestrial, over-the-air AM/FM radio broadcasts. Because of this statutory carve-out: - Traditional US radio stations pay zero royalties to record labels and performing artists. - Only songwriters and publishers collect performance royalties from terrestrial radio (under Section 106(4)).
The Digital Audio Transmission Expansion
Section 114(d) establishes that digital services (non-interactive webcasters, satellite radio, digital TV channels) must pay sound recording performance royalties under a statutory license. This is the legal basis for SoundExchange collections.
Global Reciprocity Penalty
Because the U.S. fails to pay neighboring rights for analog broadcasts, foreign collection societies (like PPL in the UK or GVL in Germany) frequently refuse to pay neighboring rights royalties to US performing artists for analog broadcast play in their territories, citing a lack of international reciprocity.