May Book 2020 May 2020 - Page 14

GET PLAYED, GET PAID Understanding Neighbouring Rights A song has two forms of copyright: 1. Underlying musical work or composition – i.e. the music and the lyric elements (publishing); and 2. The sound recording of a song or composition (master) The term ‘neighbouring rights’ is used in some countries to refer to the public performance, broadcast, communication and reproduction rights in sound recordings. Literally, neighbouring rights sit besides, or ‘neighbour’ the composition copyright of a work. Public performance rights – similar to broadcast, communication or reproduction rights – are controlled by the entity that owns copyright in the master recording. Under New Zealand law, the default position is that the owner of copyright in a sound recording is the person who made the “arrangements necessary for the making of the recording”, usually the person who paid for the studio time and other costs associated with making the recording. This could be a record company or a self-releasing artist. The default position can be changed by written agreement, for example two artists in a band might agree in writing that they jointly own copyright in the recording even if only one of them paid the studio costs. Recorded Music NZ refers to this copyright owner as the Master Rights Holder. Income sources for neighbouring rights include the public performance of music used at or broadcast/ communication via: • online radio and terrestrial radio e.g. AM/FM radio (excluding in the US, more on that below) • broadcast media e.g. television • digital and online • music in business and the community In NZ there is no right for individual performers to receive remuneration as such (unless they are also master rights holders – see above). However, Recorded Music NZ operates a scheme (the Direct to Recording Artist Scheme) under which featured artists based in NZ 14 • NZ MUSIC COMMISSION MAY BOOK 2020 may have a claim to receive some of this income directly (more on featured artists below). NEIGHBOURING RIGHTS IN NEW ZEALAND Neighbouring rights are not uniform throughout the world. Neighbouring rights tend to vary much more widely in scope between different countries than songwriters’ and composers’ rights. In New Zealand, these royalties are collected by ourselves, Recorded Music NZ, or the relevant rights holder directly. Recorded Music NZ distributes funds collected from: • Public performance via OneMusic New Zealand With OneMusic New Zealand, the licensing process for businesses using music has gone from two licences for the two rights from two organisations (APRA AMCOS and Recorded Music NZ) to one licence from OneMusic New Zealand. • Broadcast licences with TV and radio (free to air, public, community and subscription) • Certain communication licences with digital services (e.g., free to air TV catch up, commercial radio simulcasts, or other online radio services) After the deduction of administration and operational costs, all fees collected are distributed through to Recorded Music NZ Master Rights Holders and featured NZ recording artists registered with Recorded Music NZ via its Direct-to-Recording Artist Distribution Scheme. HOW TO GET PAID BY RECORDED MUSIC NZ FOR YOUR SOUND RECORDINGS BEING PLAYED If you are a New Zealand recording artist and/or if you control the rights to your sound recordings, make sure you register with Recorded Music NZ now. If you own the copyright in your recordings (see above), you would sign up to Recorded Music NZ as a Master Rights Holder. If you are a NZ citizen or resident, and a @RECORDEDMUSICNZ RECORDEDMUSICNZ