May 2026 Historical Royalties Update
Starting in April 2024, we began initially processing matched historical royalties for the Phono 3 rate period in sets. For each set of royalties from a given DSP (or DSPs), we would first distribute matched historical royalties for previously unpaid uses reported by the DSP(s) concerned, then we would aim to distribute matched historical royalties for previously partially paid uses from the same DSP(s) the following month. We have now initially processed the historical royalties we received from every DSP except for FanLabel and Weav utilizing this two-step process. (We expect to initially process the historical royalties for FanLabel and Weav later this year.)
Although we have largely finished initially processing these historical royalties, we continue to reprocess the remaining historical royalties from all three rate periods. This reprocessing resulted in our distribution of an additional $1.9 million in historical royalties this month, broken down as follows:
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$2k in royalties for the Phono 1 rate period (2008-2012);
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$208k in royalties for the Phono 2 rate period (2013-2017); and
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$1.7 million in royalties for the Phono 3 rate period (2018-2020).
We will continue to reprocess the remaining historical royalties in the coming months in order to distribute even more of these royalties.
Overall, The MLC has been able to match and distribute nearly $236 million — over 59 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:
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Over 97 percent of the previously unmatched historical royalties for uses that took place during the Phono 1 rate period (2008-2012);
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Over 56 percent of the previously unmatched royalties for uses that took place during the Phono 2 rate period (2013-2017); and
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Nearly 60 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?
We have now processed nearly all of the previously unmatched historical royalties for usage that took place during the Phono 3 rate period. The only remaining historical royalties from the Phono 3 period that we have yet to process were transferred by FanLabel and Weav. Unfortunately, issues with the data these DSPs provided have prevented us from processing these royalties. Since the total amount of royalties transferred by these two DSPs is only a little over $16k, we plan to revisit these royalties later in the year.
Where Can I Learn More?
To see the progress we’ve made so far distributing historical unmatched royalties, you can view our Historical Royalties Dashboard 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.