October 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. Utilizing this two-step process, we have now initially processed the historical royalties we received from every DSP, except for FanLabel and Weav. We will inform Members in a future newsletter once we have scheduled FanLabel and Weav for processing.
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 $1.2 million in historical royalties this month, broken down as follows:
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$7k in royalties for the Phono 1 rate period (2007-2012);
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$222k in royalties for the Phono 2 rate period (2013-2017); and
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$1.0 million in royalties for the Phono 3 rate period (2018-2020).
We will continue to reprocess the remaining historical royalties in order to distribute even more of these royalties.
Overall, The MLC has been able to match and distribute nearly $240 million — over 60 percent — of the $397 million in previously unmatched historical royalties that DSPs transferred to us in 2021. Currently, our Historical Royalties Dashboard shows that we have distributed:
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100 percent of the previously unmatched historical royalties for uses that took place during the Phono 1 rate period (2007-2012);
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Over 57 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 61 percent of the previously unmatched royalties for uses that took place during the Phono 3 rate period (2018-2020).
The total amounts transferred that are shown in our dashboard include, with respect to Spotify, the amount Spotify actually paid The MLC. This amount reflected Spotify’s estimate of the portion of its historical unmatched royalties that it had not already paid to copyright owners pursuant to settlements, as permitted by 37 C.F.R. § 210.10(c)(5). Because The MLC has now matched and distributed more than the amount Spotify estimated and paid, the dashboard currently shows a distribution percentage of 100% in the cumulative view of all Phono 1 historical unmatched royalties (and a distribution of above 100% in the filtered view that only shows Spotify’s Phono 1 historical unmatched royalties) even though there are still small amounts of royalties remaining from the other two DSPs (Amazon Music and Slacker Inc.) that transferred historical unmatched royalties from the Phono 1 period. You can see these amounts in the filtered view for those other DSPs.
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 initially 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. The total amount of royalties transferred by these two DSPs is only a little over $16k, and we will inform Members in a future newsletter when we have scheduled FanLabel and Weav for processing.
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.