Brief
MLC to Distribute About $7 Million in Unclaimed Royalties to Publishers Each Month
The first market‑share distribution under the 2018 Music Modernization Act will see publishers receive about $7 million each month, with at least half required to be passed to songwriters.
By Felo News Desk · Published
The Mechanical Licensing Collective (MLC) announced that, beginning in April 2026, music publishing companies will receive roughly $7 million each month from the pool of unclaimed streaming royalties, according to Billboard.
What happened
The MLC, created by the 2018 Music Modernization Act (MMA), has been matching streaming‑generated royalties to their rightful owners for three years. When matches cannot be made, the MMA authorises the MLC to allocate the remaining "black box" money to copyright owners based on their market share. The collective said the January 2021 figure – about $7 million – will serve as the benchmark for the upcoming monthly distributions.
What the reports add
Billboard notes that the $7 million figure reflects the amount of unclaimed royalties that accumulated in January 2021, the first month the MLC operated. The outlet also estimates that, if the monthly payouts remain comparable, publishers could collectively receive about $70 million by the end of 2027. The MMA requires that at least 50 % of these funds be credited to songwriters, though the exact market‑share percentages for individual publishers were not disclosed.
What was said
An MLC spokesperson told Billboard, "the calculation is based on the usage data" and emphasized that the organization will continue to seek matches for the pool, which could cause the monthly figure to decline before the first distribution.
How it came about
The distribution stems from the MMA’s mandate to eliminate the growing backlog of unclaimed royalties that have built up since the streaming era began. Earlier Felo coverage highlighted industry moves such as Partisan Music’s acquisition of OTM Music, illustrating how publishers are expanding their catalogs while the MLC prepares to channel unclaimed funds back into the publishing ecosystem.
Key facts
- The MLC will begin monthly payouts of roughly $7 million to music publishers in April 2026. (billboard.com)
- The $7 million figure is based on the amount of unclaimed royalties recorded in January 2021. (billboard.com)
- Publishers must credit at least 50 % of the distributed money to songwriters, per the MMA. (billboard.com)
- If the monthly payouts stay comparable, publishers could receive about $70 million by the end of 2027. (billboard.com)
Sources
- [1] billboard.com — originally reported as “Music Publishers Will Be Handed Millions of Dollars Next Year. Here’s Why”
