MLC Audits Spotify and Other DSPs for Royalty Payment Accuracy

The Mechanical Licensing Collective (The MLC) has issued notices of intent to audit nearly 50 Digital Service Providers (DSPs), including Spotify, to verify the accuracy of their royalty payments under the compulsory blanket license. This move, mandated by the Music Modernization Act, aims to ensure that DSPs have accurately reported and paid royalties to songwriters and copyright owners. The MLC will cover the audit costs and distribute any recovered funds to impacted rightsholders, enhancing protection for songwriters and music publishers.