WASHINGTON, D.C. — SoundExchange and MusicNation have entered a reciprocal agreement designed to move neighboring-rights royalties between the United States and the United Arab Emirates.
Under the arrangement, eligible American performers and sound-recording rights holders can receive royalties collected for qualifying uses in the United Arab Emirates. Emirati creators and rights holders can likewise receive eligible U.S. digital-performance royalties through SoundExchange.
The agreement creates an important new collection path as recorded music activity expands across the Middle East.
WHAT NEIGHBORING RIGHTS COVER
Neighboring rights generally compensate performers and owners of sound recordings for certain public performances and broadcasts. They are separate from songwriting royalties, mechanical royalties and other payments tied to the underlying musical composition.
That distinction is essential. An artist or label can be properly registered for composition income and still miss money connected with the master recording or performance.
SoundExchange administers statutory digital-performance royalties in the United States for services including noninteractive digital radio. MusicNation operates as a rights organization in the United Arab Emirates.
A PRACTICAL CHECKLIST FOR RIGHTS HOLDERS
Artists, labels and managers should confirm that names, recordings, ownership percentages and payment information are accurate with the appropriate organizations. Metadata inconsistencies can delay matching and distribution even after a reciprocal agreement is in place.
They should also avoid assuming that one registration covers every territory or royalty type. International royalty collection often depends on the specific right, use, territory and agreement between organizations.
The new relationship does not mean that every use in either country automatically produces a payment. Eligibility still depends on local law, reporting, repertoire matching and the terms administered by each organization.
Even so, the agreement is a meaningful step toward connecting two music markets that have not always had a direct royalty pathway. It may also give independent artists and labels a stronger reason to review international registrations before pursuing promotion, touring or licensing activity in the region.
Sources:
https://www.musicbusinessworldwide.com/soundexchange-strikes-reciprocal-agreement-with-the-uaes-musicnation-opening-neighboring-rights-royalty-flows-in-both-markets/
https://radiofacts.media/soundexchange-and-musicnation-open-uae-u-s-royalty-pathway/