Apple Pays $163.34 Million in Licensing Fees for Songwriters and Publishers

The Mechanical Licensing Collective today announced (via Variety) that Apple and other digital service providers have paid a total of $424,384,787 in historical unmatched royalty fees.

apple music
Of that total, Apple paid $163,338,890 which was the highest fee paid out. Spotify paid $152,226,039, which marked the second highest payment. After that, Amazon paid $42,741,507, and Google paid $32,855,222. Other streaming services like Pandora, iHeart Media, SoundCloud, and Deezer paid smaller amounts.

The Mechanical Licensing Collective (MLC) that collected the funding is a nonprofit organization that was created in 2019 by the Music Modernization Act and designated by the U.S. Copyright office.

Starting in January 2021, the MLC began providing blanket licenses to eligible streaming and download services in the United States. It collects royalties due under those licenses and then pays them out to songwriters, music publishers, and others to make sure creators are receiving the proper funds for their work. Prior to now, song-by-song licensing was used, making it difficult for streaming services to deliver the proper royalties to all those involved in a song's creation.

The back fees that were paid by streaming companies in January and February are related to the Music Modernization Act's limitation on liability for past infringement. Songwriters, music publishers, composers, and others have long struggled to be paid by streaming music services, which the MLC is meant to address. Music streaming providers also sent data linking royalties to creators, and the MLC's job will be to review and analyze the data provided by the streaming music companies to find and pay the proper copyright holders.

Songwriters, composers, music publishers, and others will be able to register with the MLC to receive the payments that they're owed. The MLC will begin sending out payments in April.

A total of 20 DSPs separately transferred accrued historical unmatched royalties to The MLC as required in order for them to seek the MMA's limitation on liability for past infringement. In addition to the accrued unmatched royalties transferred to The MLC, the DSPs concerned also delivered more than 1,800 data files, which contain in excess of 1.3 terabytes and nine billion lines of data.

The transfer of these monies represents the culmination of a months-long effort on the part of The MLC and these DSPs to develop and implement the specifications for these usage reports. With these historical unmatched royalties and usage reports now in hand, The MLC can begin the process of reviewing and analyzing the data in order to find and pay the proper copyright owners.

Going forward, music providers like Apple are required to send the MLC monthly usage data on streaming content along with the corresponding royalties, which the MLC will dole out. For unmatched royalties, the MLC maintains a database that creators can search to see if they're due missing money.

Top Rated Comments

farewelwilliams Avatar
27 months ago
Apple Music has less paying subscribers, yet paying more royalties than Spotify.

Spotify is scummy.
Score: 20 Votes (Like | Disagree)
technicalFoozle Avatar
27 months ago
"$163,338,890 million" That is a lot of millions!

I'm pretty sure the word "million" is redundant after the number. I say this because for a moment I was very confused at how much they paid not to grammar-shame. I referred back to the headline for clarity.
Score: 10 Votes (Like | Disagree)
cjboffoli97 Avatar
27 months ago
Man. Imagine if companies like Facebook, Instagram and Pinterest had to pay a compulsory license for all of the images that are posted to their respective sites (by third parties that don't own or have permission to use the work). Visual artists might have an improved chance at making a living instead of those companies simply profiting from the broad exploitation.
Score: 10 Votes (Like | Disagree)
travelsheep Avatar
27 months ago
When an artists gets a DIRECT payment from CUSTOMER TO ARTIST of e.g. $ 100 after processing fees and taxes she can be lucky to net $ 60 or $ 70. For these umbrella deals with the big managers and houses and management fees and what not I guess that crumbles down to merely a few dollars after taxes, even for the biggest musicians.

We customers are getting screwed over too. When I send money to an artist I want my hard earned cash to go to the artist, not to some ultra-rich man-in-the-middle attackers.
Score: 10 Votes (Like | Disagree)
hoodafoo Avatar
27 months ago
I'm guessing $163 million translates to a couple extra quarters in artists royalty checks next month?
Score: 9 Votes (Like | Disagree)
genovelle Avatar
27 months ago

It's fine. I don't see any reason that because someone is a musician they are entitled to more money than the rest of us.
What are you creating that adds value to the world? If you have intellectual property you also deserve to be compensated accordingly.
Score: 8 Votes (Like | Disagree)

Popular Stories

iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Leak Reveals Unified Volume Button and Mute Button

Monday March 20, 2023 8:33 am PDT by
As previously rumored, the next-generation iPhone 15 Pro and iPhone 15 Pro Max will feature a unified volume button and a mute button, according to leaked CAD images shared in a video on the Chinese version of TikTok and posted to Twitter by ShrimpApplePro. Instead of separate buttons for volume up and volume down, the iPhone 15 Pro models are expected to have a single elongated button for...
original iphone auction

Factory-Sealed Original iPhone Sells for $55,000 at Auction

Friday March 17, 2023 1:08 pm PDT by
A first-generation iPhone still sealed inside its box sold for $54,904 at auction, which is more than $54,000 over the original $599 price tag of the device when it was released in 2007. The original iPhone was put up for sale by RR Auction on behalf of a former Apple employee who purchased it back when it first came out. Back in February, an original, sealed iPhone sold for over $63,000,...
iPhone 12 Pro vs iPhone 15 Pro Feature

iPhone 12 Pro vs. 15 Pro: New Features to Expect if You've Waited to Upgrade

Friday March 17, 2023 10:29 am PDT by
While year-over-year iPhone upgrades are not always groundbreaking, new features can begin to stack up over multiple generations. For example, the iPhone 15 Pro will be a notable upgrade for those who still have a three-year-old iPhone 12 Pro. If you are still using an iPhone 12 Pro and are considering upgrading to the iPhone 15 Pro when it launches later this year, we have put together a...
top stories 18mar2023

Top Stories: iPhone 15 Pro Pricing, New iOS 16.4 Beta, Siri vs. ChatGPT, and More

Saturday March 18, 2023 6:00 am PDT by
Apple's high-end iPhone models have started at $999 in the U.S. since they first launched back in 2017 with the iPhone X, but could this finally be the year that starting price sees an increase? This week also saw some more rumors about Apple's upcoming headset and the company's explorations in the booming AI industry as well as the release of a new round of beta updates, so read on for all...
iPhone 15 Pro Mock Feature Buttonless

iPhone 15 Pro Max to 'Break Record' for Thinnest Bezels on a Smartphone

Friday March 17, 2023 2:59 am PDT by
The iPhone 15 Pro Max will have the thinnest bezels of any smartphone, beating the record currently held by the Xiaomi 13. That's according to the leaker known as "Ice Universe," who has divulged accurate information about Apple's plans in the past. Both iPhone 15 Pro models are expected to have thinner, curved bezels compared to the iPhone 14 Pro, potentially resulting in an Apple...
iphone 14 pro max deep purple feature purple

iPhone 15 Pro Launching This Year With These 11 New Features

Monday March 13, 2023 6:47 am PDT by
While the iPhone 15 lineup is around six months away, there have already been plenty of rumors about the devices. Many new features and changes are expected for the iPhone 15 Pro models in particular, including a titanium frame and more. Below, we have recapped 11 features rumored for iPhone 15 Pro models that are not expected to be available on the standard iPhone 15 and iPhone 15 Plus:A17...
iOS 16

iOS 16.4 for iPhone Nearing Launch With These 5 New Features

Monday March 20, 2023 11:50 am PDT by
Apple says iOS 16.4 is coming in the spring, which began this week. In his Sunday newsletter, Bloomberg's Mark Gurman said the update should be released "in the next three weeks or so," meaning a public release is likely in late March or early April. iOS 16.4 remains in beta testing and introduces a handful of new features and changes for the iPhone. Below, we have recapped five new features ...