Since April 2024, 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 second set of royalties for Deezer and Bill Graham in the amount of $114k.

We also continued to reprocess the remaining unmatched historical royalties from previous distributions. This month’s distribution included 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 $3.3 million in additional historical royalties this month, plus interest, from a number of digital services.

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 August, we plan to distribute the first set of matched historical royalties from LiveOne (AKA LiveXLive and Slacker, Inc.) and Trebel. Consistent with our usual process, the August distribution will include 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 unmatched royalties it reported, we will prorate the payments they made on a per stream basis, across all of the previously unmatched streams they reported, and then distribute those royalties we were able to match to works registered with The MLC. 

Once those distributions are completed, we will only have historical royalties from four remaining, smaller DSPs left to process for the first time. We will let you know in a future newsletter how we intend to handle 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.