Streaming services pay $ 424 million in royalties unmatched by mechanical licensing team

Streaming services, including Spotify and Apple Music, paid $ 424,384,787 in accumulated historical copyright (or “black box” money) to the Mechanical Licensing Collective, MLC announced Tuesday. Once MLC analyzes the data to pay copyright holders, composers and publishers who have applied to become members of MLC, will begin receiving royalty payments and statements immediately after April, variety reports. MLC will also maintain a public database and make it so that registered users can file complaints.

Today’s payment to MLC marks one of the first steps outlined by the Music Modernization Act, which dictates that MLC has a responsibility to distribute unmatched royalties to rights holders within two years. After the two-year period has passed, MLC has the option of distributing the remaining money unmatched to publishers based on market share.

The largest amounts transferred from digital streaming platforms to MLC came from Apple Music (over $ 163 million), Spotify (over $ 152 million), Amazon (over $ 42 million) and Google / YouTube (over $ 32 million) ).

The president / CEO of the National Association of Music Publishers, David Israelite, said the MLC payment is a “massive victory” in a statement. “Composers and music publishers have struggled for years to ensure that they have been paid accurately and fully by digital streaming services,” he said. “Unmatched money has affected the industry, and today, thanks to the Music Modernization Act, we know it amounts to just under $ 425 million – not including the money previously paid in multi-million dollar settlements.”

Michelle Lewis, composer of the North American executive director, asked SONA members to become members of the MLC to find out how they are eligible. “This money will now be equal and will find its way to the songwriters and law publishers who have earned these royalties,” Lewis said. “We encourage all SONA members, along with each composer, to go to theMLC.com to find out how they are eligible to join or participate, which is essential to ensure that every writer who has earned this money receives their share. of these royalties. “

Kris Ahrend, CEO of MLC, said in a statement that MLC has spent over a year developing resources and doing information activities for creators and publishers. “We were also fortunate to receive valuable input and guidance from board and committee members – composers, editors and directors of digital services – which has helped shape MLC’s mission and scope since the adoption of the MMA.” said Ahrend. “The arrival of the license availability date today marks another important milestone in the process of delivering on MMA promises and the MLC team could not be more excited.”

Artist Rights Alliance issued a statement saying that the transfer of royalties is an “excellent start – but there is still a lot of work to be done to get the money to the composers who earned it.” The ARA statement continues:

We are grateful to the team of the Copyright Office who worked with skill and obstacle in resolving a number of complex issues in the months leading up to this transfer, including major disagreements over the proper treatment of past industrial settlements.

In the coming months, we look forward to working with the Bureau on the efforts of publishers who have already been paid for historical customs through settlement agreements to seek double payment for these new funds. As I told the office in our previous documents, major publishers who have already settled with digital services and received payments from them should not be allowed to claim any of the money transferred to MLC today.

Today’s news is a huge step for composers – one made possible by so many actors across the music community who have come together to work for the adoption of the Music Modernization Act and continue to work in good faith as it is implemented. .