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Neighboring Rights Management and Collection – UMW Recordings Inc.

We automatically manage the collection of neighboring rights for record labels and artists.

Valentina Rios avatar
Written by Valentina Rios
Updated this week

This management is supported by a specific legal contract and by our registration with international entities such as SoundExchange.

📌 What Are Neighboring Rights?

Neighboring rights are royalties generated when your sound recordings are publicly performed or broadcast, including:

📻 Digital, satellite, or online radio
📺 Television, cable, and background music services
📱 Non-interactive digital platforms (e.g. Pandora, Tidal Radio)
🏢 Public spaces like stores, gyms, hotels, restaurants, etc.

These royalties apply to both performing artists and phonographic producers (master rights holders).


🏛️ UMW as a Collecting Entity

UMW Recordings Inc. is officially registered as a neighboring rights management entity, authorized to collect these royalties on behalf of our associated labels and artists.


🛠️ How Does the Process Work?

  1. The artist or label signs the Neighboring Rights Management Agreement with UMW.

  2. UMW registers and updates each recording using its ISRC code.

  3. Royalties are collected via entities such as SoundExchange and other international partners.

  4. Revenues are then distributed periodically to the artist/label according to the terms of the contract.


📑 Management Agreement – Key Terms

The agreement signed between the artist or label and UMW includes the following key provisions:

  • Purpose: Exclusive management and collection of neighboring rights worldwide.

  • Scope: Covers all current and future recordings owned by the licensor.

  • Duration: Three-year term, automatically renewable unless notice is given.

  • Remuneration: UMW retains a previously agreed percentage of net income received, with payments made 45 days after receipt.

  • Warranties: The licensor guarantees legal ownership of the rights.

  • Termination: Possible by mutual agreement, breach of contract, force majeure, or formal notice.

  • Data protection & confidentiality: Fully enforced under applicable law.

  • Jurisdiction: Governed by the laws of the country stated in the agreement (default: Ecuador).


💸 Royalty Distribution via SoundExchange

SoundExchange allocates royalties as follows:

🎤 45% to the featured performing artist
🎶 5% to non-featured artists or session musicians
💿 50% to the phonographic producer (label or master owner)

UMW ensures each party receives their correct share according to official metadata.


✅ Benefits of Working with UMW

🧩 Global centralization – No need to register with multiple entities individually
🔐 Legal security and binding agreements
📊 Transparency through regular payout reports
📈 Increased revenue from previously unclaimed public performances
🤝 Expert support throughout the entire process


📩 How Do I Get Started?

  • Request the Neighboring Rights Management Agreement from our team,
    or through the online form: https://form.typeform.com/to/qX9DPXLP

  • Sign the contract digitally

  • Receive confirmation of your registration in the global collection systems

Once complete, UMW will begin tracking, registering, and managing your recordings internationally.

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