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28.06.13 Music Week 23


ability for rights-holders to demand bigger tariffs is also be bolstered as well. “A segment which has grown significantly over recent years is electronic dance music with DJ Tiesto, Armin van Buuren, Afrojack, David Guetta and the like,” explains Bos. More generally Sena says it has seen success in


the biggest music markets around the globe, with Bos highlighting Japan and Brazil in particular. “The US is by far our most important foreign revenue source, however” he adds. “Although they have a less widespread coverage of Neighbouring Rights mandates.” Indeed, the case of the United States is not a


signatory of the Rome Convention, therefore it recognise Neighbouring Rights. However, in more recent times the territory has at least begun offering of a lucrative alternative in one particular area. “Some territories such as the USA do not


currently recognise Neighbouring Rights,” explains Harbottle and Lewis solicitor Chloe Wright. “That being said, SoundExchange do collect and


distribute royalties for the featured artist and the sound recording copyright owner when content is played on a non-interactive digital source - digital radio - which is a sort of Neighbouring Rights collection. The flip side of this is that US artists whose recordings were made in the USA do not receive payment for their Neighbouring Rights in the UK, or other territories where Neighbouring Rights are recognised. “However, given the size of the music market in


the USA it would be a major coup for record labels and performers were this to change in the future and Neighbouring Rights were to be fully recognised in the USA.” Two years ago, Domino Records set up Double


Six Rights Management as an independent agency focused on the collection of Neighbouring Rights income for its own artists as well as other labels and performers around the world. Domino Music Group’s Neighbouring Rights


“In 2012 we collected £36.6 million [in Neighbouring Rights], which was a growth of 13% year on year” PETER LEATHEM, PPL


manager Henry Thomas says that although technically not a traditional ‘Neighbouring Right’ in the purest sense, America’s digital transmission collections alone means the territory has become hugely significant for his clients. “The growth of SoundExchange is quite


remarkable when you consider how limited their collection remit is,” he tells Music Week. “The fact that it’s now the biggest music licensing company in the world just goes to show the potential in the US should terrestrial radio or


public performance ever become licensed.” There’s a clear consensus that - putting the


technically exempt US aside - Neighbouring Rights is big business across the globe and is only getting bigger. You might be thinking there has to be a catch; and you’d be right. The countries that signed up to the Rome Convention back in 1961 were left to their own devices in order to ratify it - something that has led to a range of different interpretations of the agreement. This has spawned wildly different criteria from international collecting societies in terms of who qualifies for their Neighbouring Rights - and how they get paid. Niels Teves, CEO of Fintage House, which


offers its own Neighbouring Rights collection service in conjunction with Rights Agency Ltd, puts it succinctly: “There is no worldwide [Neighbouring Rights] coverage yet and the laws, rules and regulations covering Neighbouring Rights differ substantially from country to country, even within the EU and very much so outside.” Giordano Pignagnoli, Neighbouring Rights


manager at Off Limits, an Italian production company with its own Neighbouring Rights service, sheds light on some of the collection complications that can be encountered within the EU. He says that Italy in particular creates


Neighbouring Rights headaches because of a new liberalisation law that makes the market free for any potential competitor to act as ‘collection society’ in the territory.


collecting your neighbouring rights income around the world


020 8875 8834 info@doublesixrights.com www.doublesixrights.com


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