Since April, we have been distributing matched historical royalties 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 Tidal in the amount of $1.6 million. We had originally planned to include matched historical royalties for Amazon’s Phono 3 usage in our December distribution. However, we discovered an issue in the revised data we received from Amazon following the finalization of the Phono 3 rates, which temporarily delayed our processing of these royalties. Instead, we included the first set of matched historical royalties for Phono 3 usage from Tidal in the December distribution, and we plan to include the second set of these royalties in January’s distribution.
Looking ahead, we plan to distribute matched historical royalties for Phono 3 usage from Google Play in our February and March distributions, followed by the matched historical royalties from Amazon in our April and May distributions.
We also continued to reprocess the remaining unmatched historical royalties from previous distributions. This month’s distribution includes newly matched historical royalties for uses that took place between 2007 and 2017 during the Phono 1 and 2 rate periods, and between 2018 and 2020 during the Phono 3 rate period. As a result of reprocessing these remaining unmatched historical usages, we were able to distribute approximately $192k in additional historical royalties this month, plus interest, from a number of digital services.
Historical Unmatched Royalties
Overall, we have now distributed more than 89 percent of the previously unmatched historical royalties for uses that took place during the Phono 1 rate period (2008-2012), more than 51 percent of the previously unmatched royalties for uses that took place during the Phono 2 rate period (2013-2017), and more than 47 percent of the previously unmatched royalties for uses that took place during the Phono 3 rate period (2018-2020). Combining the data for all three rate periods, we have now distributed more than 47 percent of the total amount of previously unmatched historical royalties transferred to us by DSPs, bringing the total amount of previously unmatched historical royalties transferred by DSPs to The MLC that The MLC has been able to match and distribute to more than $189 million.
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 January, we plan to distribute the second set of matched historical royalties from Tidal. Consistent with our usual process, the December distribution included matched historical royalties for previously unpaid uses reported by Tidal. The January distribution will include matched historical royalties for previously partially paid uses from Tidal.
We expect to continue this process for the remaining Phono 3 historical usage into the spring of 2025, until we have finished distributing all of the previously unmatched historical royalties for uses from the Phono 3 period that we have been able to match to registered works in our database for the shares of those works that our Members have claimed. 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.