Traps & Scams Every Musician Must Avoid

Neighboring Rights Unclaimed Worldwide - Traps & Scams Every Musician Must Avoid

Neighboring Rights Unclaimed Worldwide - Traps & Scams Every Musician Must Avoid

If you think royalties vanish by magic, you are kind of right. Not because leprechauns stole them. Because most musicians never register for neighboring rights and so massive amounts of money just sit in collecting society coffers or get scooped by sketchy middlemen. This guide reads like a survival manual written by a friend who has seen the scams, the greedy admin deals, and the bureaucratic traps that can make you give away decades of income for a pizza and a promise.

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This is written for musicians and producers who want cash that is theirs. We will explain the term neighboring rights in plain language, break down how the money moves around the world, show the common scams that cost artists thousands, and give you a ruthless, practical plan to claim what is rightfully yours. Expect real life scenarios, negotiation tips you can use today, and the exact documents and metadata you need to collect checks instead of excuses.

What Are Neighboring Rights

Neighboring rights are royalties that belong to performers and phonogram producers for the use of sound recordings. Think of them as the rights that sit next to copyright in the songwriting world. Songwriters and publishers own the copyright in the composition. Performers and the record owner get neighboring rights on the actual sound recording. Those rights pay when your recording is publicly broadcast, played in venues, or streamed in certain services depending on the country.

Quick glossary that will make industry people stop sounding like aliens

  • Neighboring rights Also called related rights. These pay performers and producers for uses of sound recordings.
  • Performer The person who performs on the recording. That can be the lead singer, session musicians, backup singers, and sometimes producers who performed.
  • Phonogram producer The entity that finances, records, and owns the master recording. Often a label but can be an independent artist who paid for the session.
  • Collecting society A local organization that collects and distributes royalties for neighboring rights in a country.
  • ISRC International Standard Recording Code. A unique ID for each recording. You need good ISRC hygiene.
  • Metadata The data attached to a recording such as song title, performer names, ISRC, writer credits, and release date. Bad metadata kills payouts.
  • Admin deal When a company offers to collect royalties for you in exchange for a percentage. Read the contract slowly and with a magnifying glass.

Why So Much Neighboring Rights Money Goes Unclaimed

Short answer: things that should be simple are not. Long answer: territorial rules, registration requirements, wrong metadata, label negligence, and predatory middlemen. Here are the main reasons.

Territorial fragmentation

Neighboring rights are largely territorial. That means each country has its own rules and its own collecting society. If you never register in a country where your song was played, no one knows to pay you. You do not get an automatic global payment just because you uploaded your music to a streaming service.

Registration required in most places

Many collecting societies require performers and phonogram owners to be registered before they can receive distributions. If you were the session guitarist on a track and nobody registered that session in the country where the track was played, you do not get a cent. It is not spite. It is bureaucratic policy.

Labels and producers forget or hide registrations

Labels sometimes register everything under the label name and forget to list the session musicians, or they delay registering because it costs money. Independent producers may hold the master and decide not to register performers. That means musicians frequently miss out.

Metadata and attribution errors

Wrong name spelling, missing ISRC, or incorrect performer credit are classic leaks. Streaming platforms and broadcasters rely on correct metadata to route payments. Garbage metadata equals missing checks.

Scams and bad admin deals

Artists get contacted on social media and told that a company can get them a pile of back royalties if they sign a contract. Often those deals are exclusive, long term, or pay tiny percentages. Sometimes the collecting agent is fake. That is the worst form of charity.

How Neighboring Rights Money Flows By Platform

Money flow is messy and depends on the country and the type of use. Here is a map of common routes so you know where to look when the check never arrives.

Terrestrial radio and TV

In many countries outside the United States, radio and TV stations pay collecting societies for the public performance of recordings. That money goes to performers and phonogram producers through the local society and then through reciprocal collection agreements when the recording was used in another country. If you are not registered with your home society or the society in the country that played you, the route stalls.

Non interactive digital services

Services like web radio, satellite radio, and similar non interactive digital transmissions often pay statutory digital performance royalties. In the United States those royalties for the sound recording are collected by SoundExchange. Elsewhere local collecting societies play similar roles. Registering with the relevant society is critical to get these payments.

On demand streaming

On demand streaming such as most interactive services pays via a mixture of deals. Those payments often go to the rights owner of the master, usually labels or distributors. Some countries also split out a neighboring rights share for performers. This is complicated and requires you to track who owns the master and whether the local law gives performers a direct cut.

Public play in venues

When music plays in clubs, bars, or shops the venue pays a local society for the public performance. The society distributes to the rightful rights holders if the recording is logged and registered. If the venue uses a blanket license that does not properly identify your recording, you can miss out.

Learn How to Write Songs About Rights
Rights songs that really feel true-to-life and memorable, using bridge turns, hooks, and sharp section flow.
You will learn

  • Pick the sharpest scene for feeling
  • Prosody that matches pulse
  • Hooks that distill the truth
  • Bridge turns that add perspective
  • Images over abstracts
  • Arrangements that support the story

Who it is for

  • Songwriters chasing honest, powerful emotion writing

What you get

  • Scene picker worksheet
  • Prosody checklist
  • Hook distiller
  • Arrangement cue map

Common Traps Musicians Fall Into

We call these traps because they look small at first and then quietly take money for years. You will recognize a few because they are everywhere and they smell like someone promising easy money on Instagram.

The upfront registration fee scam

An agent reaches out claiming they will register you in multiple territories for a one time fee. Sounds convenient. The reality often is that the societies you need to register with accept direct registrations for free or for nominal fees. The agent pockets the payment and provides no real service. Always verify the collecting society and ask for a receipt from that society.

The perpetual exclusive admin deal

These contracts give an admin company exclusive rights to collect neighboring rights worldwide for a long term. In exchange you get a small percentage and maybe a one time bonus. Look at the contract length. If it binds you forever or for decades you are signing away future income you cannot easily recover. Never give exclusivity unless you receive clear, documented evidence that the admin will perform and that audit rights and termination rights exist.

The fake collecting society

There are organizations that look official but have no real links to broadcasters or platforms. They will sell membership, promise payouts, and then quietly dissolve. Always verify the society with national performing rights organizations or international bodies. Ask for evidence of distributions and check their website for reciprocity agreements.

Metadata laundering

Some distributors and aggregators strip or rewrite metadata. They might standardize names or list a label as the performer. That can block performers from receiving neighboring rights. Always check your distributor or aggregator metadata before release and demand reports that include ISRC and performer lists.

Signing away moral rights or neighboring rights unknowingly

Some contracts blur the difference between copyright and neighboring rights. A producer may ask for all rights in exchange for payment. If you sign a wobbly contract without a lawyer you may have sold your neighboring rights to a label or to the producer for next to nothing. Read the words like a detective. If anyone asks you to sign rights away forever, reread and call someone smarter than you who is not emotionally invested.

Real Life Scenarios You Will Recognize

Session musician who never got registered

Olivia played bongos on a viral track that got radio play in Spain, France, and Brazil. The track was released by an independent producer who registered the master under the producer name but never listed Olivia as a performer in any collecting society. Months of radio play happened and Olivia never saw a cent. The fix required Olivia to gather session notes, bank transfers to prove payment, an ISRC list, and then file performer claims with multiple societies. She reclaimed years of unpaid royalties but it took time and patience because the recording was not properly credited from the start.

Producer sold their rights for a small fee

Marco produced a beat for an emerging artist and then handed the master to an online company that promised to push the track. The company also asked Marco to sign an agreement giving them the neighboring rights for the master. Marco took a small cash payment and later realized the track generated public performance income he would never receive. The lesson is that immediate cash is often a bad future bargain. If someone is offering you money to take your rights now, calculate how much you would earn over five years and compare. You will often see the truth in cold math.

Artist signed an exclusive admin deal on Instagram

A recent graduate of an online viral challenge got messages promising to collect all unclaimed global royalties for a flat fee plus 35 percent commission. The contract was exclusive for 20 years. The artist signed because they wanted quick money. The admin company did nothing for months and then started sending confusing batch payments with no statements. The artist had to hire a rights specialist to audit the admin company and negotiate an exit fee. The moral is simple. Do not sign long exclusive contracts with companies you found on social media without verification and strong audit rights.

How To Protect Yourself and Claim What Is Yours

Here comes the fun part. You will need to act like someone who remembers where they left receipts. That is you. Do the work and the money will follow. Below is a pragmatic step by step plan you can execute in the next 90 days.

Learn How to Write Songs About Rights
Rights songs that really feel true-to-life and memorable, using bridge turns, hooks, and sharp section flow.
You will learn

  • Pick the sharpest scene for feeling
  • Prosody that matches pulse
  • Hooks that distill the truth
  • Bridge turns that add perspective
  • Images over abstracts
  • Arrangements that support the story

Who it is for

  • Songwriters chasing honest, powerful emotion writing

What you get

  • Scene picker worksheet
  • Prosody checklist
  • Hook distiller
  • Arrangement cue map

Step one Gather documentation now

Collect every possible document that proves you performed or owned the master. That includes session logs, invoices, contracts, bank transfers that show payment, ISRC lists, and the recording files with timestamps. If you do not have original documents, get sworn affidavits from producers, studio owners, or the main artist. These documents will be needed for retroactive claims.

Step two Audit your metadata

Make a spreadsheet that contains every track you performed on or produced. Columns should include the title, lead artist, ISRC, release date, label or distributor, who owns the master, and the countries where it was played if you know them. This spreadsheet is your kitchen sink. Keep updating it.

Step three Register with your home collecting society

Find the collecting society in your home country that handles neighboring rights. Examples include SoundExchange in the United States for digital performance royalties, PPL in the United Kingdom for performers and phonogram producers, and GVL in Germany. Each country is different. If you do not know where to start, search for your country name plus neighboring rights or performers collecting society. Register yourself as a performer and, if you own masters, register as a phonogram producer. Do not assume your label or distributor will register you.

Step four Claim any retroactive royalties

Most societies have a process to claim past royalties if you can prove entitlement. Use your documentation and spreadsheet and file claims. Expect bureaucracy. Expect delays. Expect to be asked for the same document twice. Follow up politely but persistently. Consider a small solicitor or rights specialist if the claim is large and the society makes it difficult.

Step five Fix metadata for future releases

Before release, control the metadata. Make sure ISRCs are correctly assigned to the right performers and that your name is spelled consistently across releases. If you are a performer on multiple tracks, use the same performer name every time. Avoid variations like YourNameOfficial, Your_Name, and YourName. Pick one and use it forever.

Step six Be careful with admin deals

If a company offers to collect your neighboring rights for a fee, read these contract points slowly and do not sign until you are comfortable with each one.

  • Term length. Prefer short fixed terms and renewable options rather than forever or indefinite assignments.
  • Exclusivity. Non exclusive is safer. If they insist on exclusive, require strong performance guarantees and audit rights.
  • Commission. Industry standard admin fees vary. Do not accept huge percentages without services to justify them.
  • Audit rights. You must be able to audit payments and records at any time with reasonable notice.
  • Withdrawal. Ensure you can terminate the agreement and reclaim your rights with clear exit fees or none at all.
  • Territorial scope. Limit the territory if possible or confirm that the company has real reciprocal agreements with societies in those territories.

How To Verify A Collecting Society Or Admin Company

Always verify before you hand over money or sign. Here are fast checks that catch 90 percent of frauds.

  • Look for reciprocity agreements. Legitimate societies list reciprocal societies they work with. If a society cannot show where they get foreign collections you should be suspicious.
  • Check the society web presence. Real societies have many years of history and industry references. New slick websites do not equal legitimacy.
  • Ask for recent distribution reports. A legitimate society can show anonymized reports that prove they pay out money.
  • Contact an established industry body such as IFPI or CISAC and ask if the society is a recognized operator in that territory.
  • For admin companies ask for client references and then call those references directly. Ask for full statements and proof of payment.

Metadata Checklist That Pays

Fix these things now and every future release will be easier to collect on.

  • ISRC for each recording
  • Correct and consistent performer name spelled the same on every release
  • Clear designation of who owns the master and contact details
  • Session musician credits with role and percentage where applicable
  • Release date and territory information if territory specific
  • Publisher and composer data for composition splits so mechanicals do not mask neighboring rights

Negotiation Scripts And Email Templates

Here are short scripts you can use when dealing with labels, societies, or suspicious agents. They are blunt and to the point because time is money.

To your label or producer asking for performer registration

Subject: Request to register performer credits for [Track Title]

Hi [Name],

I need written confirmation that my performance on [Track Title] with ISRC [XXXX] has been registered with the relevant collecting societies as of the release date. Please provide the registration numbers and proof of registration within 14 days. I am asking because I want to register with my home society and ensure there is no duplication of rights. Thanks, [Your Name and contact].

To a suspicious admin company that contacted you online

Subject: Request for proof before any agreement

Hi,

Before we discuss terms I need the following documents. One a copy of your recent distribution statements for clients in my territory with personal data redacted. Two your registration or accreditation with local societies. Three three client references I can call. I will not sign anything until I see these items. If you cannot provide them I will assume you are not a fit. Thanks, [Your Name].

Tools And Resources Worth Using

These are the kinds of organizations and tools you will mention in a bar conversation and sound smart. Use them.

  • SoundExchange. The US organization that collects statutory digital performance royalties for sound recordings.
  • PPL. The United Kingdom collecting society for performers and phonogram producers.
  • GVL. The German society that handles performers rights for broadcasts and public plays.
  • ISRC agency. Register your ISRCs through your national ISRC agency or a distributor that provides ISRCs.
  • IFPI. Industry body representing labels worldwide with useful resources on rights and revenues.
  • CISAC. International confederation of author societies. Good for checking society legitimacy and reciprocal links.

Action Plan You Can Execute This Week

This is the short version with actual deadlines. Do one thing per day and you will be on the path to getting money you never knew you had.

  1. Day one Make a spreadsheet of every recording you have performed on or produced. Add ISRCs and owner name.
  2. Day two Collect contracts, invoices, and session logs into a single folder. Take photos or scans of anything physical.
  3. Day three Register with your home collecting society as a performer if you have not already. Upload the documents you collected.
  4. Day four File retroactive claims for the biggest three recordings on your list. Be prepared to send supporting documents.
  5. Day five Audit your metadata for upcoming releases. Confirm ISRC and performer name before distribution.
  6. Day six If you are being offered an admin deal, send the verification request email and do not sign until they pass the checks.
  7. Day seven Follow up with any societies you contacted and set calendar reminders to check on claim status every two weeks.

What To Do If You Think You Were Scammed

If you suspect a scam stop communicating and gather the evidence you have. That includes contracts, payment records, emails, and any marketing material the company published. Contact your local consumer protection agency and report the company. If the sums are significant hire a lawyer or a rights specialist who knows collecting society law in the relevant territory. Sometimes a strongly worded demand from a credible attorney will make a bad actor return money or produce statements. Prevention is easier than cure but the cure exists.

Knowing the words lets you sound like a competent adult when you call a lawyer or society. Here are the core legal words that matter.

  • Assignment Transfer of rights. If you sign an assignment you usually give your rights to another party.
  • License Permission to use a right under certain conditions. A license does not transfer ownership.
  • Exclusive Means only that company can act for you. Exclusive usually reduces your flexibility.
  • Non exclusive Means you can appoint others for the same rights. Safer when you do not trust the other party.
  • Audit rights Your ability to inspect the other party records to verify payments. Insist on this.
  • Reciprocity agreement An arrangement between societies to collect for each others members when music is used across borders.

How To Read Your First Neighboring Rights Statement

When you finally receive a distribution statement do not panic. Here is how to read it like a pro.

  • Check the reporting period and the territory. Make sure the period covers the plays you think were made.
  • Find the recording by ISRC or title. Verify the performer name on the statement.
  • Look at the gross amount collected and the deductions. Societies often deduct administrative fees and taxes. Understand those percentages.
  • Check if the statement is a proportional distribution which means the society pooled money and then split based on usage logs. That is normal.
  • Save every statement. They are proof if you need to prove payment or negotiate with an admin company.

Final Checklist Before You Sign Anything

Do this ritual before you hand over rights or sign an admin agreement. It will save money, blood pressure, and possibly your future mortgage payments.

  • Confirm the company is recognized by national societies.
  • Ask for proof of past distributions and references.
  • Never accept a lifetime transfer of rights unless you are paid like a billionaire.
  • Keep rights non exclusive where possible.
  • Confirm audit and termination rights in writing.
  • Get an independent review if the deal feels confusing.

Neighboring Rights FAQ

Who receives neighboring rights royalties

Performers and phonogram producers typically receive neighboring rights royalties. In some countries broadcasters and record labels also have related claims. The precise distribution depends on local law and the rules of the collecting society.

Do I need a lawyer to register

For basic registration no. You can register with many societies yourself. For complex claims or if you face resistance from a label or admin company a lawyer or rights specialist can speed things up and prevent giving rights away unnecessarily.

How long do claims take

It varies. Some societies distribute quarterly or annually. Retroactive claims can take months or longer. Be persistent. The paperwork moves faster when you are organized and polite but insistent.

Can I get royalties from other countries

Yes, if your recordings were used in those countries and you or your society are registered or the society has reciprocal agreements. Registration with your home society plus correct metadata makes global recovery much easier.

What if I no longer have session paperwork

Get affidavits from producers, studio owners, or collaborators. Use bank records to prove payment. Societies accept alternative evidence but the cleaner your proof the faster the claim resolves.

Learn How to Write Songs About Rights
Rights songs that really feel true-to-life and memorable, using bridge turns, hooks, and sharp section flow.
You will learn

  • Pick the sharpest scene for feeling
  • Prosody that matches pulse
  • Hooks that distill the truth
  • Bridge turns that add perspective
  • Images over abstracts
  • Arrangements that support the story

Who it is for

  • Songwriters chasing honest, powerful emotion writing

What you get

  • Scene picker worksheet
  • Prosody checklist
  • Hook distiller
  • Arrangement cue map


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About Toni Mercia

Toni Mercia is a Grammy award-winning songwriter and the founder of Lyric Assistant. With over 15 years of experience in the music industry, Toni has written hit songs for some of the biggest names in music. She has a passion for helping aspiring songwriters unlock their creativity and take their craft to the next level. Through Lyric Assistant, Toni has created a tool that empowers songwriters to make great lyrics and turn their musical dreams into reality.