The Recording Academy will always fight for the rights of songwriters and publishers — and now, these artists are going to get a historic payout.

The Mechanical Licensing Collective (MLC), referencing the Copyright Royalty Board's Phonorecord III final decision in August, has stated that songwriters and publishers are entitled to nearly $400 million in additional payouts.

According to the MLC, during the Phono III blanket licensing period that lasted from 2021 to 2022, digital service providers (DSPs) like Spotify, Amazon Music and YouTube underpaid rights holders by a hair over $419 million. That total is derived from $281 million for mechanical royalties and $137.8 million for performance royalties.

However, these DSPs inadvertently overpaid publishers for mechanical royalties during the Phono III historical unmatched period, which spanned 2018 to 2020. The overpayment shaves off $28.8 million from the total, bringing the total down around $390 million.

The MLC clarified that the amounts are estimated, and may change based on clarifying calculations.

"We are extremely pleased that songwriters and music publishers finally will receive the over $400 million they are owed in mechanical and performance royalties from the 2021-2022 period," said NMPA president/CEO David Israelite in a statement.

"Our appellate win upholding the rate increase we achieved in 2018, will finally net music creators and copyright owners the windfall they should have received years ago," he added.

"This is encouraging and validating news for songwriters to be paid what they are deserved," added Susan Stewart, Senior Managing Director, Songwriters & Composers Wing. "We applaud the MLC for their continued efforts to match these royalties to the appropriate rights holders."

For a full accounting of the adjustments from the individual DSPs, visit the MLC website — and keep watching RecordingAcademy.com for more news on music people's rights!

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