MLC paid $700 million in royalties to songwriters and publishers – Billboard
The Mechanical Licensing Collective held its second annual meeting of members this week in Nashville. In the presentation, the organization shared key information about its second year of operation, including that it had distributed nearly $700 million in global royalties to its members.
According to the meeting, the MLC, which has been operational since January 1, 2021, now has 22,000 members, with 6,000 new additions in 2022 alone, and has over 17 million registered works to date, processing more than 98% of these recordings. . To date, it has collected nearly $1 billion in mechanical royalties on behalf of songwriters and publishers, and rightsholders have received more than $800 million in royalties, including nearly $700 million dollars in global royalties distributed directly by the MLC. Approximately $120 million in royalties were processed by the MLC but paid by digital service providers such as Spotify, Apple Music, YouTube, etc., under voluntary licenses.
Since commencing operations, MLC claims to have completed 19 monthly royalty distributions, all of which were completed on time or ahead of schedule. Over the past six months in particular, the nonprofit has reported that its current match rate for all royalties processed through the September Royalty Breakdown is 89% and has exceeded 85% for six consecutive months.
“We are incredibly proud of these achievements,” says CEO Kris Ahrend. “Our team has worked hard to build robust data processing systems that allow us to distribute royalties accurately and on time. We have also released a suite of tools for our members that allow them to effectively manage their catalog data and correct any missing or inaccurate data they find. Although there is still work to be done, we are pleased with our progress and deeply appreciate all the support we have received from our members and the wider industry.
During the meeting, the MLC also shared that Tim Cohan and Scott Cutler were elected to serve on the Board of Directors for a second three-year term, and Kara Dioguardi was elected Songwriter Director of the Board for a second three-year term.
The MLC was formed in response to the Music Modernization Act 2018 to be exclusively responsible for administering general compulsory licenses for musical compositions to streaming services.
The MLC was formed with the designation of the United States Copyright Registry in response to the Music Modernization Act of 2018 to be exclusively responsible for administering general compulsory licenses for musical compositions to streaming services. Operations began in early 2021, and it has been paying out royalties since April this year, including money from Spotify, Apple Music, Pandora, and more.