MLC STARTS ITS FIRST AUDIT OF DSPs

The Mechanical Licensing Collective has issued notices of intent to conduct audits of DSPs. Among those on the list are Amazon, Apple, Google, Pandora and Spotify.

By sending audit notices to the U.S. Copyright Office and DSPs, the MLC is exercising the right granted by Congress in the Music Modernization Act (MMA) to audit DSPs to ensure they have accurately reported and paid royalties. The audit covers 1/1/21 through 12/31/23.

“Ensuring DSPs have reported royalties accurately is one of The MLC’s statutory responsibilities under the MMA,” says MLC CEO Kris Ahrend. “The MLC has tapped music industry audit veteran, Jane Bushmaker, a member of The MLC’s Analytics & Automation team, to oversee DSP audits, which will be conducted by experienced outside audit firms.”

Should an audit reveal an underpayment of any amount, the MLC will distribute the full amount of any recovery to the impacted rightsholders, without deducting any audit costs or fees. For a full list of the DSPs, go here.