Neighboring Rights & Global Master Performance Arbitrage
Understanding public performance rights for sound recordings, the U.S. digital statutory landscape, and international CMO collection.
10.1 Scope of Neighboring Rights
Neighboring rights (related rights) can compensate master copyright owners and performing artists when sound recordings are broadcast or played in public. Domestic PROs such as ASCAP and BMI generally address composition performance royalties; the collection path depends on the territory, use, and organization.
10.2 The U.S. Terrestrial Radio Gap & SoundExchange Mandate
U.S. terrestrial AM/FM radio does not pay sound recording performance royalties due to an archaic statutory exemption. Under 17 U.S.C. § 114, SoundExchange collects digital non-interactive performance royalties (satellite & webcasting) only.
SoundExchange International Mandate vs Direct CMO
To pursue master performance royalties outside the U.S., artists may use SoundExchange's international mandate or register directly with a foreign CMO. Coverage, reciprocity, eligibility, and registration requirements vary by territory and should be checked with the current organization.
10.3 Selected European CMO Practices: PPL UK & GVL Germany
PPL (United Kingdom)
Licenses certain UK uses of sound recordings. Current deductions, claim windows, repertoire rules, and redistribution procedures should be confirmed directly with PPL.
GVL (Germany)
Collects certain German broadcast and public-performance master royalties. Current claim windows, deadlines, and repertoire rules should be confirmed directly with GVL.
10.4 Neighboring Rights Administrative Matrix
| Entity | Terrestrial AM/FM Coverage | Claim Window | Cost Structure |
|---|---|---|---|
| SoundExchange | No (Digital Only in US) | Reciprocal partner rules | Free direct registration |
| PPL (UK) | Yes (Radio, TV, Venues) | Check current PPL rules | Check current member terms |
| GVL (Germany) | Yes (Radio, TV, Venues) | Check current GVL rules | Check current member terms |
10.5 The 2020 CJEU Landmark Decision (RAAP v PPI)
RAAP v. PPI (Court of Justice of the EU)
In Case C-265/19 (RAAP v PPI), the Court of Justice of the European Union addressed equitable remuneration and the treatment of performers from outside the EEA. The decision is not a universal collection guarantee: current national implementation, repertoire eligibility, dates, and CMO procedures still need to be checked.
Module Evaluation & Knowledge Check
Why do traditional AM/FM broadcast radio stations in the US pay $0 in performance royalties to master owners and featured artists?
ID: neighboring-rights-global-arbitrage