Neighboring rights and SoundExchange: the check almost nobody collects

There is a check many artists leave on the table without knowing. Not because it does not exist, but because nobody explained it was theirs. It is called neighboring rights, and today we are going to explain it clearly.

🎵 First: recording vs composition (they are two different things)

This is the basis of everything, and almost nobody is clear on it. A song has TWO separate rights:

1. The composition. The song as an idea: the lyrics and the melody. This right belongs to the songwriter and the author. When someone plays or performs the song, this generates one type of royalty.

2. The recording (the master). The specific version that was recorded: that voice, those instruments, that particular take. Who owns that recording depends on what was signed: it can be the artist, a label, whoever produced or paid for it, or several at once.

Think of it this way: if another artist records your song, there is ONE composition (yours) but TWO different recordings (yours and theirs). They are separate worlds, and each one generates its own money.

📻 What is SoundExchange?

SoundExchange is the organization that, in the United States, collects part of those neighboring rights and pays them out to the right people: the featured artist, the musicians who played, and the owner of the recording.

It collects specifically when your recording plays on:

• Digital radio (internet stations).
• Satellite radio.
• Certain non-interactive streaming services (where the listener does not pick the exact song).

And here is the most important part: joining SoundExchange is FREE. It costs you nothing to register and start receiving what is yours.

😕 Why do artists lose this money?

For sadly simple reasons:

They do not know it exists. Nobody explained that the recording generates money separate from the composition. They think their streaming distributor already collects “everything”. It does not work like that: neighboring rights are a different path.

They never registered. Joining is free, but you still have to do it, and many simply never take the step. Without registration, the money does not arrive on its own.

They think “that is for big artists”. False. If your recording plays on digital radio, you generate neighboring rights, whoever you are.

Producers and session musicians never even hear about it. It is not only the lead singer who has a right. The musicians who played and whoever produced the recording can also have their share. They almost never claim it.

🪜 How do I collect my neighboring rights?

The steps, no smoke:

1. Register with SoundExchange. It is free. That is the first lock you open.
2. Get your recording data straight. Your ISRCs (the code for each recording), who the artist is, who owns the master. If that data is wrong, the money gets stuck.
3. Check who else has a right. If there were musicians or producers on the recording, they can claim too. A clear split avoids fights and trapped money.
4. Keep watch so it does not slip away. Unclaimed neighboring rights can also end up in the black box.

Solnota walks you through this. The scanner asks whether you are an artist, a producer or a songwriter — because each role gets paid differently — and shows you where your recording money could have slipped away. And remember: Solnota is non-custodial, so whatever you recover goes straight to your bank; it never passes through us.