Digital Service Providers (DSPs) that started using the necessary blanket license overseen by The Mechanical Licensing Collective (MLC) in 2021 have been notified that they will be audited by The MLC.

A press release released on Wednesday, January 17, states that the first three years of The MLC’s full activities, from January 1, 2021, to December 31, 2023, are included in the audit period highlighted.

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Nearly 50 DSPs, including music streaming services Spotify, SoundCloud, Apple Music, and others, have allegedly received audit warnings from the MLC.

The United States Copyright Office selected the MLC, a nonprofit organization created by the historic Music Modernization Act (MMA), to create and manage a mechanical licensing system that was introduced on 1 January 2021.

In addition to creating a first-of-its-kind public database with essential copyright data on all musical works, the MLC is in charge of gathering and disbursing royalties that digital music providers owe songwriters and copyright owners.

The MLC declared in October that it has paid more than $1.5 billion in royalties. In February 2021, the Mechanical Licensing Collective received $424.38 million in historical Unmatched Royalties from Spotify, Apple, and other providers.

Of the $424.38 million, Apple contributed $163.3 million, Spotify $152.2 million, and Google and Amazon contributed $42.7 and $32.8 million, respectively. The MLC claims that it is using a “key right granted by” to deliver audit notices to DSPs and the US Copyright Office.

The MMA’s “Congress” With the use of this authority, The MLC can audit DSPs using the blanket license to make sure the DSPs have correctly reported and paid royalties.

The MLC claims that carrying out audits is another method by which it can guarantee the correctness of the royalty payments and use reports that DSPs submit.

According to the MLC, it already takes a variety of measures to guarantee that the DSPs report appropriately, such as carefully examining the monthly usage statistics that the DSPs produce through both automated and manual checks.

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To further investigate particular facets of DSP usage reports, the MLC states that it “also utilizes the records of use process established by the U.S. Copyright Office’s regulations.”

In the press release announcing the audit notices, the organization notes that its members “will not bear any of the audit costs” and that the charges will be paid by According to the MMA, DSPs fund the MLC’s operating budget at no expense to authors or music publishers.

Furthermore, the MLC claims it will pay the full amount of any recovery to the affected rightsholders if an audit of a DSP reveals any underpayment, without deducting any fees or costs associated with the examination.

The MLC further states that it will “clearly identify any monies recovered in audits on the royalty statements it provides to Members” and will notify Members of the outcomes of any DSP audits it does.

December reports from Billboard that Bridgeport Music is conducting an audit of the Mechanical Licensing Collective (MLC).

In the 115-year history of the United States, the MLC’s audit right is a first. compulsory mechanical license and provides enhanced protection for songwriters and music publishers,” stated Alisa Coleman, Chair of the Board of Directors of The according to Shor News social update

“The MLC’s release of audit notices marks the beginning of the execution of this vital function..”The following DSPs have received audit notices from the MLC:

Media Venture LLC Amazon (AMP)
Anghami FZ LLC (Anghami) on Amazon Music
The Appcompanist is Appcompanist, LLC.
Apple Inc. Artist Technology Group DBA Apple Inc. (Apple Music) Music Panther (Music Panther)
(Audiomack) Audiomack Inc.
(The Cover Foundry) Avail LLC
(Beatport) Beatport LLC
The Bill Graham Archives, LLC (Music of Wolfgang)
Boxing GmbH in the Tonies
Melody Tracks LLC (Melody Tracks)
Archives Classicales, LLC (Archives Classicales)
Da Capo Records, Inc.
Global Tel* Deezer S.A. (Deezer) Fan Label, LLC (FanLabel)Link Corporation (GTL)
Google, LLC (YouTube/Google Play Music)
Inc. GrooveFox (GrooveFox)
IDAGIO GmbH, a.k.a.
(iHeart Radio) iHeartMedia + Entertainment, Inc.
Trebel, owned by M&M Media, Inc.
Hoopla, Midwest Tape, LLC
Ltd. Mixcloud (Mixcloud)
S.L. MONKINGME (MonkingMe)
Selecting Music (Music Choice)
Group PLC Napster (Napster)
NAXOS, or Naxos Digital Services US Inc.
The music of Pacemaker AB (Pacemaker)
The company Pandora Media, LLC
(PianoTrax) PianoTrax LLC
Power Music (Power Music, Inc.)
Primiphonic, or PRIMEPHONIC B.V.
Revision SAS (Version Karaoke)
(Jiosaavn) Saavn Media Limited
The company Securus Technologies, LLC
LiveXLive (Slacker/Slacker, Inc.)
Smithsonian Institution (recordings by Smithsonian Folkways)
The company Sonos, Inc.
(Soundcloud) SoundCloud Operations Inc.
Spotify (Spotify) USA Inc.
Music on Tidal AS (Tidal)
Boomplay (Transnet Music Limited)

Music by Weav, Inc.

Nearly 50 DSPs, including music streaming services Spotify, SoundCloud, Apple Music, and others,

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