What are Neighboring Rights (NR)?- Neighboring Rights are the rights of performers and makers of sound recordings to be paid fairly for the broadcast and public performance of their works. Neighboring rights were enacted after 1996 and amended to the Copyright Act. The maker of a sound recording is defined in the Copyright Act as the person who makes arrangements for the first fixation of the sounds, including entering into contracts with performers, and making financial and technical arrangements. Neighboring Rights bypasses both composer and author; it addresses the contributions to a recording from session players, singers, performers and record companies.
How does someone join to get their Neighboring Rights?- Simply ask us for our appropriate application and Royalty Recovery will do the rest. Royalty Recovery has representation with almost all major territories of the world for these royalties. Neighboring Rights societies unlike ASCAP, BMI, SESAC, SOCAN etc., do not often communicate information to sister societies hence making it virtually impossible to have one society do the work of collecting your royalties. Royalty Recovery will represent your interest around the world and collect all that is yours including rectifying improperly implemented data.
What is the difference between SESAC, ASCAP, BMI, SOCAN and Neighboring Rights?ASCAP, BMI, SESAC, SOCAN (Society of Composers, Authors and Music Publishers) are responsible for administering the rights of composers, authors and music publishers while the Neighboring Rights Agencies are responsible for administering the rights of the performers and makers or master owners of sound recordings.
How does the Royalty Recovery collect revenues?- We collect revenues from many sources including record stores, restaurants, theatres, clubs, radio stations and hotels, Satellite radio services (Sirius-XM), Cable and Satellite TV transmissions, subscription services (DMX, Music Choice and Muzak), etc. All payments are split between performers and producers. We also collect on blank audio levies and Private Copying, this was created to receive and re-distribute private copying tariff revenues. Manufacturers and importers of blank audio recording media are responsible for paying the private copying levy.
Who is eligible to receive Neighboring Rights payments?
- The Copyright Act details the conditions of eligibility for Neighboring Rights. Essentially, a sound recording is eligible if its maker is an individual who is a citizen or permanent resident of a qualifying country or of a Rome Convention country (see below), or if the maker’s corporation is headquartered in a qualifying country or in a Rome Convention country, or if all the fixations for the sound recording occurred in a qualifying country or a Rome Convention country. The Qualifying Countries are: Albania, Algeria, Andorra, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Barbados, Belarus, Belgium, Bolivia (Pluri-national State of), Bosnia, Brazil, Bulgaria, Burkina Faso, Canada, Cape Verde, Chile, Colombia, Congo, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominica, Dominican Republic, Ecuador, El Salvador, Estonia, Fiji, Finland, France, Georgia, Germany, Greece, Guatemala, Herzegovina, Honduras, Hungary, Iceland, Ireland, Israel, Italy, Jamaica, Japan, Korea (Republic of), Kazakhstan, Kyrgyzstan, Latvia, Lebanon, Lesotho, Liberia, Liechtenstein, Lithuania, Luxembourg, Mexico, Moldova (Republic of), Monaco, Montenegro, Netherlands, Nicaragua, Niger, Nigeria, Norway, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Romania, Russian Federation, Saint Lucia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Syrian Arab Republic, Tajikistan, Yugoslav Republic of Macedonia (The former), Togo, Turkey, Ukraine, United Arab Emirates, United Kingdom, Uruguay, Venezuela (Bolivarian Republic of), Viet Nam. The most significant absentee in this treaty is the United States of America. A performer’s Neighboring Rights are dependent on the eligibility of the sound recording. If a sound recording is eligible, then so are the performers, regardless of the nationality or country of residence.
A brief description of Canada’s Neighboring Rights and Private Copying:
- Equitable remuneration is based on SOCAN’s tariff to collect from commercial radio in Canada. Stations pay a percentage of their gross advertising revenues to “Re:Sound” (formerly NRCC) a Canadian non-profit music licensing company dedicated to obtaining fair compensation for artists and record companies for their performance rights. The monies collected are then split 50/50 between the Performer collective societies (ACTRA PRS, AFM and ARTISTI) and the Label or Maker collective societies (AVLA and SOPROQ).
- The private copying levy is revenue from the sale of blank recording media such as “CD-R’s, CD-RW’s, Tapes, Cassettes, etc. The monies collected are then forwarded to the Canadian Private Copying Collective (CPCC). Based on a split determined by the Copyright Board, these monies are shared between organizations representing Authors and Publishers (SOCAN, CMRRA and SODRAC) and Re:Sound.
What is the Rome Convention Treaty?
- The 1961 Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations is an international treaty under which all above mentioned countries agree that their Neighboring Rights regulations will allow reciprocal treatment to rights-holders of other countries signatory to the Convention.
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