Master rights grant a rightsholder the ability to collect royalties from a digital service provider when their sound recording is utilized in user-generated audiovisual content, such as when a sound recording is used as the background music within a user-uploaded YouTube video.
Master rights also enable a rightsholder to collect “performance rights” royalties (also referred to as “neighbouring rights” royalties) generated from public performances and broadcast uses. These royalties are collected and paid out by performance rights organizations located around the world.