The Mechanical Licensing Collective (MLC) is taking a significant step towards transparency and fairness in the music industry. The MLC has announced that it will conduct audits of Digital Service Providers (DSPs) operating under the compulsory blanket license administered by The MLC.
The purpose of these audits is to review the usage of music under the blanket license between January 1, 2021, and December 31, 2023, during the initial three years of The MLC’s full operations. By utilizing its rights under the Music Modernization Act (MMA), The MLC aims to ensure that DSPs have accurately reported and paid royalties.
To oversee these audits, The MLC has appointed Jane Bushmaker, an experienced music industry auditor and member of The MLC’s Analytics & Automation team. The audits themselves will be conducted by impartial external audit firms, ensuring a thorough and unbiased examination of DSPs’ reporting practices.
An important aspect of this initiative is that the costs of the audits will not be passed on to songwriters or music publishers. The MLC’s operational budget, funded entirely by DSPs, will cover all expenses. In the event that an audit uncovers underpayment, The MLC will distribute the full recovery amount to the affected rightsholders, without deducting any audit costs or fees.
Kris Ahrend, CEO of The MLC, emphasizes the statutory responsibility of ensuring accurate royalty reporting. He expresses confidence in the expertise of the team and audit firms involved in this process.
Alisa Coleman, Chair of the Board of Directors of The MLC, highlights that this audit right is a milestone in the history of compulsory mechanical licenses in the United States. It provides enhanced protection for songwriters and music publishers, assuring them that their creative work will be recognized and fairly compensated.
The launch of these audits by The MLC marks an important step forward in promoting transparency and accountability in the music industry, prioritizing the rights and interests of artists and creators.
The source of the article is from the blog motopaddock.nl