Neighboring rights are public performance royalties paid to the owners of sound recordings when their work is played in public venues, on radio, TV, or digital platforms. These rights differ from performance rights, which cover the musical composition itself and pay the songwriter and publisher. Instead, neighboring rights benefit the recording artist and the record label.

These royalties are collected by international agencies to ensure that artists and labels are compensated for public performances of their recordings. While many countries recognize neighboring rights, the United States does not pay these royalties for traditional broadcasts like radio and TV. However, the U.S. does pay them for digital platforms through organizations like SoundExchange. This discrepancy dates back to the 1961 Rome Convention, which the U.S. did not sign.

Neighboring rights have become a significant revenue source for the music industry, with global income from these rights growing substantially in recent years. Efforts like the “Fair Play, Fair Pay” Act aim to change U.S. laws to align with international standards, though such legislation has yet to pass. Neighboring rights are crucial for ensuring that performers and producers are fairly compensated for their contributions to the music industry.