The Mechanical Licensing Collective (MLC) holds more than $424 million in streaming royalties it has been unable to match to songwriters. It plans to begin distributing eligible unmatched funds by rights holders’ market share in April 2027.
A stream on a digital service provider (DSP) such as Spotify or Apple Music generates a mechanical royalty for the underlying composition. Incomplete streaming data or missing composition registrations and ownership splits can prevent the MLC from identifying who should receive it. Those royalties are commonly called “black box” funds.
Under the rules described by the MLC, funds become eligible for distribution by market share after remaining unmatched for three years and being held by the collective for one year. Major publishers, which hold large market shares, may receive a portion of funds that remain unclaimed.
Independent artists and songwriters seeking to identify royalties owed to them can:
- Register their compositions with the MLC.
- Check that ownership splits are accurate.
- Match each recording’s International Standard Recording Code (ISRC) to its composition.
- Claim any royalties associated with their works.
Registration and royalty collection through the MLC are available at no cost.
