Since April 2024, we have been distributing matched historical royalties for usage that took place during the Phono 3 rate period in sets. For each set of royalties from a given DSP (or DSPs), we first distribute matched historical royalties for previously unpaid uses reported by the DSP(s) concerned, then we aim to distribute matched historical royalties for previously partially paid uses from the same DSP(s) the following month.
This month, we distributed the first set of royalties for LiveOne (f/k/a LiveXLive and Slacker, Inc.) and Trebel in the amount of $186k. Because LiveOne transferred less than the total amount of historical unmatched royalties it reported to The MLC, we prorated the payments they made on a per stream basis across all of the previously unmatched streams they reported, and we then included in this month’s distribution those royalties we were able to match to works registered with The MLC.
Overall, The MLC has been able to match and distribute nearly $227 million — or more than 57 percent — of the $397 million in previously unmatched historical royalties that DSPs transferred to us in 2021.
Broken down by rate period, we have now distributed:
- Nearly 93 percent of the previously unmatched historical royalties for uses that took place during the Phono 1 rate period (2008-2012);
- Nearly 54 percent of the previously unmatched royalties for uses that took place during the Phono 2 rate period (2013-2017); and
- Nearly 58 percent of the previously unmatched royalties for uses that took place during the Phono 3 rate period (2018-2020).
Consistent with the way we’ve handled matched historical royalties in the past, the matched historical royalties we distributed this month are clearly identified on your royalty statements, and we specify the usage month for these historical royalties just like we do for blanket royalties. As we have always done, we’ve distributed matched historical royalties using the same payee data that we used to distribute blanket royalties (i.e., we’ve distributed royalties to the “current payee” registered in The MLC’s database, as reflected in the snapshot of ownership data we used for this month’s blanket royalty distribution).
What’s Next?
Looking ahead to September, we plan to distribute the second set of matched historical royalties from LiveOne and Trebel. Consistent with our usual process, the August distribution included the first set — matched historical royalties for previously unpaid uses reported by LiveOne and Trebel. The September distribution will include the second set — matched historical royalties for previously partially paid uses from LiveOne and Trebel. Because LiveOne transferred less than the amount of historical unmatched royalties it reported to The MLC, we will again prorate the payments they made on a per stream basis across all of the previously unmatched streams they reported, and we will then distribute those royalties we were able to match to works registered with The MLC.
Once the September distribution is completed, we will only have historical royalties for usage that took place in the Phono 3 rate period from four remaining, smaller DSPs left to process for the first time. We will let you know in September’s newsletter how and when we intend to process and distribute those remaining historical royalties.
The following table shows our current schedule for processing this remaining Phono 3 historical usage. If for any reason this schedule changes, we will share our updated schedule with you in our future Member newsletters.
Where Can I Learn More?
We will continue to provide monthly recaps and previews about the matched historical royalties we distribute for uses from the Phono 3 period in our monthly Member newsletters.
To catch up on the progress we’ve shared about historical unmatched royalties so far, you can find all the updates here. You can also read an overview on our historical unmatched royalties page (which reflects the most current Phono 3 adjustments) here.
If you have any questions about any of these updates, or anything else related to The MLC, please don’t hesitate to contact our Support Team.