When was the last time you played that old CD you’ve lovingly kept in your physical collection, or that classic vinyl gifted by someone you consider very special? Us too. Listening to your favorite songs through subscription-based contracts on digital platforms has become the norm in today’s mass music consumption.

Only on Spotify, the song “La Parabólica” is estimated to have around 6 million plays worldwide, with Chilean audiences being among the top consumers of the track. The hit “La Parabólica” dates back to 1996 and was composed by Isaac Villanueva and performed by Patricio Fernando Zúñiga Jorquera, known in Chile by his stage name Tommy Rey, who recently passed away.

This smash hit was distributed to several Digital Service Providers (DSPs)—including Spotify, YouTube Music, Deezer, Tidal, Amazon Music, among others—and has now accumulated over 10 million listeners globally, according to statistics managed by Chartmetric.

The song “La Parabólica” is an intellectual property asset, which means it is subject to rights held by individuals or entities who must safeguard and enforce them. One category of those rights is known as neighboring rights—which protect performers, including artists and musicians, for their contribution to a recorded musical work. In this context, Chilean performer Tommy Rey plays a key role.

The international regulation of neighboring rights is set out in the Rome Convention of 1961 (International Convention for the Protection of Performers, Producers of Phonograms, and Broadcasting Organizations), to which Chile has been a party since 1974. These rights are also recognized in the WIPO Performances and Phonograms Treaty (WPPT) of 1996, and in various free trade agreements negotiated by Chile. This framework has opened the door for Chilean artists and performers to have their digital performances governed under local law.

In this regard, Chile’s Intellectual Property Law does recognize and protect the neighboring rights of performers and musicians. However, it does not specifically regulate the current reality regarding the management, collection, and payment of royalties derived from public communication through DSPs. This makes it difficult for performers to collect the royalties to which they are entitled for the use of their work in Chile and becomes even more complex because, as a general rule, artists tend to assign these rights contractually during the recording process.

Under these circumstances—and as a posthumous tribute to artist Tommy Rey—a bill was introduced in Chile in April 2025 aiming to amend Law No. 17.336 on Intellectual Property. The bill is based on the need for performers to be able to receive the royalties they are rightfully due from digital platforms.

The bill seeks, first, to establish a legal guarantee to balance contracts in which performers and/or musicians assign their rights to phonogram producers; and second, to expand the powers of current collective management organizations (CMOs) in administering neighboring rights.

A third factor to consider is whether these legal reforms will benefit only Chilean music, or whether they will be applied to all performers regardless of their origin.

This legislative initiative presents a great opportunity for performers and producers to become aware of the importance of defining and reviewing their contract clauses, and to manage their affiliations and registrations with the entities that collect royalties on their behalf, in order to ensure proper administration and payment of their rights.

At the same time, DSPs will need to reassess their strategies for operating in the country to adapt to the new regulations. Will the outcome be similar to the case of value added tax (VAT), where the increased cost was passed entirely to users?

There is no doubt that all stakeholders in the music industry play an essential role in making the proposed legislative reform a reality in Chile. The performer needs the phonogram producer, and the producer needs the DSP—and vice versa. The music industry is highly collaborative, requiring clear rules and expert guidance for each party involved.

At ClarkeModet Chile, we encourage all players in the entertainment industry to proactively manage their intellectual property assets. We offer a panel of advisors and experts to support these creative processes.

We’re here to help—feel free to reach out with your questions.