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.
As we made you aware in our last Member newsletter, in this month’s distribution we resolved an issue involving matched historical royalties related to usage on Spotify in 2020 for previously partially paid uses that were inadvertently included in the October distribution. Importantly, this issue did not affect any of the matched historical royalties we distributed prior to October, and it only impacted a portion of the matched historical royalties we distributed last month.
Since the issue we resolved related to matched historical royalties that we intended to report for the first time this month, there are no other newly reported matched historical royalties in this month’s distribution. However, we continued to reprocess the remaining unmatched historical usage from previous distributions, so this month’s distribution does include some 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 $260k in additional historical royalties this month, plus interest, from a number of digital services. Any new historical royalties distributed due to reprocessing are identified on your Payee Activity Statement in the row for "Historical Unmatched Royalties (including interest)."
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, more than 51 percent of the previously unmatched historical royalties for uses that took place during the Phono 2 rate period, and more than 46 percent of the previously unmatched historical royalties for uses that took place during the Phono 3 rate period. 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 $187 million. (This total is a little lower than the total we shared last month because roughly $3 million in royalties from last month’s distribution were shifted back into unclaimed after we corrected the issue that impacted the October distribution.)
What’s Next?
Looking ahead to December’s distribution, we intend to begin processing the first set of matched historical royalties from Amazon. Just as we have done with the historical usage we have already processed, we will first distribute matched historical royalties for previously unpaid uses reported by Amazon, and then we will distribute matched historical royalties for previously partially paid uses from Amazon.
We expect to continue this process for the remaining Phono 3 historical usage through the end of this calendar year and 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.