U.K. neighboring rights organization PPL has announced a new agreement with the AFM/AFTRA Intellectual Property Rights Distribution Fund in the U.S. It is the first time PPL has worked with the AFM/AFTRA Fund.

The Fund comes from SoundExchange-administered revenues due to record companies and performers for the use of recordings on U.S. satellite radio and Internet broadcasts.

The revenues SoundExchange collects from satellite radio and Internet broadcasts are divided equally between record companies and performers. The performers' share is then divided: 95% for featured performers and 5% for non-featured performers.

The 5% is then further divided: 2.5% goes to non-featured vocalists and 2.5% to non-featured musicians. Under U.S. law, these splits are managed respectively by a representative of the American Federation of Musicians (AFM) and the American Federation of Television and Radio Artists (AFTRA). Both organizations have appointed the AFM/AFTRA Fund to manage these revenues on their behalf.

Under this new agreement, PPL and AFM/AFTRA have agreed a reciprocal arrangement for payments to non-featured performers including session musicians, backing vocalists and orchestral players. PPL will pay the AFM/AFTRA Fund an "equitable" remuneration for the broadcast and public performance of sound recordings in the U.K. PPL's non-featured performers will receive a share of monies administered by the AFM/AFTRA fund for the use in the U.S. of recordings upon which they appear.