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Related rights organizations

2 min read

What are related rights organizations?

Related rights organizations represent performers and rights holders of sound recordings and collect royalties on their behalf.

What is a Related Rights Organization?

Sometimes also called neighboring rights organizations, Related Rghts Organizations include Performers Collective Management Organizations (PMOs) and Music Licensing Companies (MLCs), which rights and collect and pay to , , or both, when their are publicly performed or generate income via certain other uses. Public performances can include playing a sound recording on TV or radio, in clubs and restaurants, on websites, or other music broadcasting systems. In some countries, PMOs also collect royalties for certain online uses. These are often the same uses collect royalties for, for the public performance of the . See our page on Performing Rights Organizations for more information.

For more details about rights, visit our topics on Music Creators’ Rights, Rights Transfer and Licensing, and Scope of Protection.

Visit our page on Collective Management Organizations to learn more about different types of CMOs.

What does a Related Rights Organization do?

These organizations perform a range of functions, the most important being:

  • the use of sound recordings

  • Collecting royalties and from businesses and organizations that use sound recordings

  • Distributing those royalties to performers and record labels

How do Related Rights Organizations work?

These organizations work by licensing the use of sound recordings to businesses and organizations. When a business or organization wants to use these in public, they must obtain a license and pay for the use.

They then distribute royalties to the performers and record labels they represent, who have in the sound recordings. The amount of royalty earned is typically based on how many times the sound recording was played. But many variations can apply in different countries in different scenarios.

Many Related Rights Organizations are members of SCAPR or affiliated with IFPI, or can be found through the local .

For more details about this, visit our Getting Credited and Paid topic.

Why are Related Rights Organizations important?

They are important because they help to make sure that performers and other are paid for the use of their performances and sound recordings. Keeping track of this would be near-impossible for performers and rights holders, so Related Rights Organizations play a vital role in the music ecosystem.

Image credit: Martin Fabricius Rasmussen